PENGARUH LIQUIDITY, CAPITAL STRUCTURE, ACTIVITY, dan FIRM SIZE TERHADAP PROFIT GROWTH

The Nexus between Corporate Financial Ratio and Price Earnings Performance: Evidence from President Election Period in Indonesia

“…This can lead to overconfidence in their investment decisions and an increased risk of losses. Similarly, investors may be biased towards readily available information [12,24,45], such as recent market trends or news headlines, rather than conducting thorough research and analysis [12,23,37]. This can lead to overlooking important factors that could impact the stock's performance [34,50,45], resulting in suboptimal investment decisions.…”

“…For example, the strength and credibility of a candidate's signals can mediate the relationship between presidential election periods and the P/E ratio [7, 9; 13]. If a candidate is seen as credible and has a strong track record of delivering on their promises, their signals may be more influential in the market, leading to greater effects on the P/E ratio [23,27,24]. On the other hand, if a candidate is seen as unreliable or untrustworthy, their signals may be discounted or ignored by investors, leading to weaker effects on the P/E ratio [34,39,43,55].…”

“…The presidential election period in Indonesia can significantly impact business activities in the country [17,21,24,25]. Elections can create uncertainty, leading to a decrease in investment and consumer spending.…”