THE EFFECT OF PROFITABILITY, SOLVENCY, LIQUIDITY, AND COMPANY SIZE ON STOCK RETURNS OF ENERGY SECTOR COMPANIES DURING THE COVID-19 PANDEMIC

Abstract

This research aims to determine the effect of profitability, solvency, liquidity and firm size on stock returns of energy sector companies during the Covid-19 pandemic. This research uses quantitative methods involving secondary data from the financial reports of the energy company sector which is analyzed through sample panel data regression with research on 44 energy companies listed on the Indonesia Stock Exchange (IDX) for the period 2020 - 2022. The analytical method used is panel data regression analysis and using EViews 12 software. This research finds that profitability and liquidity have a positive effect on stock returns. Companies need to maximize their financial performance through publishing information on the company's profitability and liquidity ratios to attract investor interest. However, solvency and firm size had no effect on stock returns because information of solvency and firm size are not a factor for investors to buy company's stock.