THE EFFECT OF FINANCIAL PERFORMANCE AND STOCK LIQUIDITY ON INVESTOR RESPONSE

Abstract

This study aims to examine the effect of financial performance and stock liquidity on investor response. The financial performance variable is measured by Return on Equity (ROE) and stock liquidity is measured by Trading Volume Activity (TVA) on the investor response variable measured by stock returns. The samples used in this study are industrial sector companies listed on the Indonesia Stock Exchange (IDX) in 2022 – 2024. The analysis method applied is multiple linear regression analysis method with the SPSS 27 program. This type of research is quantitative research with sampling obtained using purposive sampling method, namely sample selection based on predetermined criteria so that a sample of 51 out of 60 industrial sector samples listed on the Indonesia Stock Exchange (IDX) in 2022 – 2024 is obtained. The results showed that financial performance as measured by Return on Equity has a significant effect on investor response as measured by stock returns while stock liquidity as measured by Trading Volume Activity has no significant effect on investor response.