Analysis of the Effect of Profitability on General Corporate Information and Forward-looking Information and its impact on the Company's Share Prices listed on the Indonesia Stock Exchange

Abstract

Many cases of investors who experience losses in investing by buying company shares have led to thoughts about what information is actually needed by investors in reducing the possibility of mistakes. The purpose of this research is to find and create the latest model of information that should be conveyed to reduce the occurrence of multi-interpretation of information. The population used is 540 companies listed on the Stock Exchange with the criteria of having active financial and web reports at the time of the study, then the target population becomes 302 with the sampling method using saturated samples then the entire target population is sampled as many as 302 companies. The analysis used is path analysis using the smart PLS tool, The researcher managed to make a finding that at alpha five percent, profitability directly had a positive and significant effect on general corporate information, and stock prices, but not on foward-looking information. General corporate information directly affects the stock price while foward-looking information does not significantly influence the stock price. Indirectly, profitability has a positive and significant effect on stock prices through general corporate information, but not through foward-looking information.

What Drives the Stock Returns? Examining The Fundamental Factors on the Consumer Defensive Sector Companies

“…The quick ratio is a liquidity ratio that indicates how a company's current assets are utilised to fulfill its current liabilities. In general, an investor seeks to invest in strong companies for a variety of reasons, one of which is the ability to repay loans using current assets that are not contingent on the quantity of inventory (Rahmani et al, 2020;Karliena & Setyawan, 2020). If liquidity is excessive, it may not be attractive to investors because the relatively large amount of cash in the company may result in funds being mismanaged, resulting in idle funds, which can reduce the QR and thus investor interest, resulting in a decline in stock prices and lower…”

“…PBV ratio is the difference between the market price of a stock and its book value. In general, successful businesses will have a PBV ratio greater than 1, indicating that the value of a company's shares is greater than its book value and that the importance of shares is increasing (Rahmani et al, 2020;Karliena & Setyawan, 2020). The lower the PBV value, the lower the stock's price.…”

“…NPM is the ratio of net income after taxes to total sales. It measures a company's ability to generate net income versus its total revenues (Rahmani et al, 2020;Karliena & Setyawan, 2020). The more the NPM ratio rises, the more money the company makes.…”

“…The greater the ROA number, the more efficiently the business uses its assets to generate revenue (Rahmani et al, 2020;Karliena & Setyawan, 2020). If the company achieves a large profit margin, demand for shares will increase, resulting in an increase in the company's stock price.…”

Islamization of Accounting Policies as a Solution to the Ethical Problem in Accounting through Accounting Education

“…Accounting systems that identify, measure, record and evaluate the entity's financial aspects on the basis of an accounting procedure that provides appropriate information to the stakeholders of the entity (not only limited to financial data) Consequently, it will allow them to ensure that the agency functions consistently in the evaluation of its socioeconomic goals, in order to determine their own accountability to Allah (Arif Billah & Islam, 2015). and accounting in formation need to be forward looking information, forward looking information reveals the things that will be done by the company in the coming year as well as information regarding projections on the results of the analysis of the company's condition in the future (Rahmani, Maksum, Fachrudin, & Silalahi, 2020). Since Islam has its own cohesive rules governing how to run a company, if genuine Muslim customers are to be of any importance, the implementation of Islamic accounting theory and practice must be followed.…”