Profitability and Leverage: Key Drivers of Share Prices in Indonesia's Textile and Garment Industry

Abstract

This study aims to determine whether profits and leverage influence the share prices of textile companies listed on the Indonesia Stock Exchange. The aim of this research is to determine the combined effect of profitability (EPS and ROE) and leverage (DAR and DER) on the share prices of textile companies listed on the Indonesia Stock Exchange. The type of research used is quantitative. This research uses secondary data, secondary data obtained from the official BEI website (www.idx.co.id). The method used in collecting research data is the documentation method. This research uses data analysis in this research, namely quantitative analysis. The analytical tools used are classical hypothesis test (partial) with a significance level of 5%. The research results produced a multiple regression Y=4.066 + 0.463Xi - 0.216X2 + 4.657 DER)Xe on stock prices. The results of the partial t test show that there is a significant influence between share price profitability (EPS and ROE) and there is no significant influence between share price leverage (DAR and DER) in textile subsector companies. Companies operating in the textile sector.