The Impact of ROA and DER on Stock Prices in the Food and Beverage Industry for the Period 2018–2022

Abstract

The purpose of this study is to ascertain: (1) the relationship between ROA and stock prices; and (2) the relationship between DER and stock prices. (3) The simultaneous impact of DER and ROA on stock prices. Food and beverage businesses listed on the IDX in 2019–2022 make up the population used in this test. A purposive sampling approach was used in the sample selection process, yielding a total of 30 food and beverage entities. The methods for assessing hypotheses employed in this test are multiple regression analysis approaches. The study's findings demonstrate that: (1) ROA positively affects stock prices; and (2) DER has no effect on company prices. (3) Stock prices are positively impacted by both ROA and DER at the same time.