Analysis of the Impact of Financial Fundamental Factors on Stock Prices (Empirical Study of Infrastructure Companies on the Indonesia Stock Exchange 2021-2025)

Abstract

This study examines the effect of financial fundamental factors on the stock prices of infrastructure-sector companies listed on the Indonesia Stock Exchange during 2021-2025. The explanatory quantitative design uses secondary data from audited annual financial statements and year-end closing stock prices. From a population of 70 infrastructure issuers, purposive sampling produced 17 companies listed on the Main Board and consistently publishing audited reports, resulting in 85 firm-year observations. Liquidity is measured by the Current Ratio, profitability by Return on Equity, leverage by the Debt to Equity Ratio, market return by Dividend Yield, and company scale by the natural logarithm of total assets. The analysis employed descriptive statistics, the Kolmogorov-Smirnov normality test, multicollinearity diagnostics, the Glejser heteroscedasticity test, the Durbin-Watson test, multiple linear regression, partial significance tests, a simultaneous significance test, and the coefficient of determination using IBM SPSS Statistics 25. The results indicate that Current Ratio, Return on Equity, Debt to Equity Ratio, and Dividend Yield do not significantly affect stock prices. Firm Size has a positive and significant effect, with a coefficient of 473.693 and a significance value below 0.001. Simultaneously, the five fundamental variables significantly affect stock prices (F = 12.601; p < 0.001). The adjusted R-squared value of 0.408 shows that the model explains 40.8% of stock-price variation, while 59.2% is associated with factors outside the model