The Effect of Financial Performance on Stock Prices of Coal Subsector Companies Listed on the Indonesia Stock Exchange for the 2021–2024 Period

Abstract

This study examines the effect of financial performance on stock prices of coal subsector companies listed on the Indonesia Stock Exchange during 2021–2024. Financial performance is measured using Current Ratio, Return on Assets, Debt to Equity Ratio, Earnings Per Share, and Total Asset Turnover. The study uses a quantitative approach with secondary data from annual financial reports and stock price data. The sample consists of 27 coal subsector companies selected through purposive sampling, producing 108 firm-year observations. Panel data regression is estimated using the Fixed Effect Model after the Chow and Hausman tests. The results show that Current Ratio, Return on Assets, Debt to Equity Ratio, and Earnings Per Share do not have a statistically significant partial effect on stock prices. Total Asset Turnover has a positive and statistically significant effect on stock prices. Simultaneously, the five financial ratios significantly affect stock prices. The adjusted coefficient of determination is 0.947883, indicating that the model explains 94.79 percent of the variation in stock prices. The findings indicate that asset-use efficiency is the most consistent financial indicator associated with stock price movements in the observed coal subsector