Analysis of the Influence of Profitability and Company Size on Stock Returns of Indonesian Sharia Stock Index Companies

Mohamad Tohir; Yohannes Indrayono; Retno Martanti

doi:10.55927/dnhaa755

Authors

Mohamad Tohir Pakuan University Author
Yohannes Indrayono Pakuan University Author
Retno Martanti Pakuan University Author

DOI:

https://doi.org/10.55927/dnhaa755

Keywords:

COVID-19, Profitability, Company Size, Stock Return, Indonesian Sharia

Abstract

The purpose of this study is to analyze the direct influence of profitability and company size on stock returns of companies in the Indonesian Sharia Stock Index before, after, and during the COVID-19 outbreak in Indonesia. The research method used is quantitative with panel data regression analysis. The research sample is based on purposive sampling of companies in the Indonesian Sharia Stock Index listed on the Indonesia Stock Exchange, with a research period of 2017–2024, with a total sample of 43 companies. The results of this study prove that profitability, proxied by Return on Assets (RoA), and company size have a positive effect on stock returns throughout the study period, before, during, and after the COVID-19 pandemic. The implications of this research result indicate that RoA has a significant effect with increasing strength during the crisis period, with institutional ownership being very strong, especially in the period after COVID-19

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