Analysis of the Effect of Financial Performance on Stock Price Changes in Coal Mining Companies Listed on the Indonesia Stock Exchange, 2020–2024
DOI:
https://doi.org/10.24256/kharaj.v8i4.12896Keywords:
Financial Performance, Current Ratio, Return on Assets, Debt to Equity Ratio, Stock Price ChangesAbstract
Abstract: This study aims to analyze the effect of financial performance on stock price changes in coal mining companies listed on the Indonesia Stock Exchange during the 2020–2024 period. Specifically, it examines the effects of the current ratio (CR), return on assets (ROA), and debt-to-equity ratio (DER) on stock price changes. Methods: This study employs a quantitative causal-associative approach with purposive sampling. The sample comprises 15 coal mining companies selected from a population of 23 companies, yielding 60 observations. Secondary data were obtained from annual reports available through the Indonesia Stock Exchange, Yahoo Finance, and Investing.com. Panel data regression analysis was performed using the Common Effect Model (CEM) with White heteroskedasticity-consistent standard errors in EViews. Result: The overall model significance test (F-test) yielded an F-statistic of 11.2821 (p-value = 0.0000), indicating that the regression model is statistically significant and that the financial performance variables jointly have a significant effect on stock price changes. The coefficient of determination (R²) of 0.3767 indicates that the model explains 37.67% of the variation in stock price changes. Individual hypothesis tests (t-tests) showed that CR has no statistically significant effect on stock price changes, with a coefficient of −0.1503 (p-value = 0.8225). Similarly, DER has no statistically significant effect, with a coefficient of −0.2009 (p-value = 0.5478). In contrast, ROA has a positive and statistically significant effect on stock price changes, with a coefficient of 155.21 (p-value = 0.0163). Implication: The findings indicate that profitability serves as an important signal in investors’ assessments of a company’s prospects. Companies should improve the efficiency of asset utilization, while investors should consider profitability signals when making investment decisions.
References
Adliaa, N., Putri, A. P., & Sari, R. (2023). The effect of liquidity, profitability, and leverage ratios on stock prices in manufacturing companies listed on the Indonesia Stock Exchange. International Journal of Economics, Business and Accounting Research (IJEBAR), 7(2), 523–534.
Aini, N., Maslichah, & Junaidi. (2023). The effect of financial performance on stock prices with investment decisions as an intervening variable. E-Jurnal Ilmiah Riset Akuntansi, 12(1), 1–13.
Al-Manaseer, S. R. (2020). The impact of financial ratios on stock prices: Evidence from Jordanian industrial companies. International Journal of Financial Research, 11(4), 91–101. https://doi.org/10.5430/ijfr.v11n4p91
Almonifi, Y. S., & K. Bhosle, V. (2023). The impact of financial performance indicators on stock market prices: Evidence from emerging markets. Journal of Risk and Financial Management, 16(3), 1–15. https://doi.org/10.3390/jrfm16030132
Asmirantho, E., & Somantri, O. K. (2017). The effect of financial performance on stock price at pharmaceutical sub-sector company listed in Indonesia Stock Exchange. JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi), 3(2), 94–107.
Bayhaqiy, A., Mardani, R. M., & Wahono, B. (2022). The effect of profitability, liquidity, and solvency ratios on stock prices in companies listed on the Indonesia Stock Exchange. E-Jurnal Riset Manajemen, 11(1), 55–67.
Eldomiaty, T., Saeed, Y., Hammam, R., & AboulSoud, S. (2024). The impact of financial performance signals on investors’ decisions: Evidence from capital markets. Journal of Risk and Financial Management, 17(1), 1–18. https://doi.org/10.3390/jrfm17010025
Farrell Jr., J. L. (1985). The dividend discount model: A primer. Financial Analysts Journal, 41(6), 16–23. https://doi.org/10.2469/faj.v41.n6.16
Fathorrosi, M., Wahyudi, I., & Nurhayati. (2024). The effect of liquidity, profitability, and solvency on stock prices. Journal of Accounting and Finance Management, 5(1), 72–82.
Habibi, M. (2025). Financial ratio analysis and stock price performance: Evidence from Indonesian listed companies. Journal of Economics and Business, 8(1), 45–56.
Jonek-Kowalska, I. (2018). Risk management in the hard coal mining industry: Social and environmental aspects. Resources Policy, 55, 282–288. https://doi.org/10.1016/j.resourpol.2017.12.007
Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: A correction. The American Economic Review, 53(3), 433–443.
Nurjanah, S., Sari, M., & Hidayat, R. (2023). The effect of liquidity, profitability, and solvency ratios on stock prices in companies listed on the Indonesia Stock Exchange. Journal of Accounting Research, Organization and Economics, 6(2), 125–136.
Permana, R., Wijaya, H., & Lestari, D. (2025). Financial performance analysis and its effect on stock price movement in Indonesian listed companies. International Journal of Economics Development Research, 6(1), 88–101.
Ross, S. A. (1977). The determination of financial structure: The incentive-signalling approach. The Bell Journal of Economics, 8(1), 23–40. https://doi.org/10.2307/3003485
Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010
Sunaryo, D. (2020). The effect of financial ratios on stock prices in mining companies listed on the Indonesia Stock Exchange. International Journal of Scientific & Technology Research, 9(3), 4010–4015.
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2026 Eca Elsya Meiliana, Alamsyah
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.
