The Effect of Current Ratio and Return on Asset to The Company Stock Price on the LQ 45 Index

Abstract

The economic development of a country can be seen by the investment capability of the country, one of which is by maximizing the performance of the capital market in the country. To increase investment in the capital market, every investor needs a reference to invest. The LQ 45 index is one of the references for investors to invest in the capital market. The financial performance of companies incorporated in the LQ 45 index is a description of the financial condition to show the strengths and weaknesses of a company. Data used in this study are secondary data obtained from the company's financial statements on the LQ 45 index published on the Indonesia Stock Exchange during the 2013-2017 period, there are 26 companies sampled. The data analysis technique used in this study is multiple linear regression analysis. The results of this study indicate when the t test that there is effect of Current Ratio on stock prices seen from a significant level of 0.039 < 0.05 and the Return on Assets affects the stock price with a significant level of 0.000 <0.05. In the F test (simultaneous) together the Current Ratio and Return on Assets affect the stock price with a significant level of 0.000 <0.05.