Liquidity, Solvency, and Asset Growth Effects on Stock Prices: The Mediating Role of Profitability in Transportation and Logistics Companies Listed on the Indonesia Stock Exchange (2019–2024)
Abstract
This study investigates the effects of liquidity, solvency, and asset growth on stock prices, both directly and indirectly through profitability as a mediating variable, in transportation sector companies listed on the Indonesia Stock Exchange during 2019–2024. Liquidity is measured using the Current Ratio (CR), solvency using the Debt-to-Equity Ratio (DER), asset growth through annual asset growth, profitability using Return on Assets (ROA), and stock prices based on closing prices. A quantitative approach employing panel data regression analysis is applied, while the mediating role of profitability is examined using the Sobel test. The findings indicate that liquidity and asset growth have positive and significant effects on stock prices, whereas solvency has a negative effect. Liquidity and asset growth also positively influence profitability, while solvency negatively affects profitability. Profitability significantly increases stock prices and mediates the relationships between liquidity and stock prices as well as asset growth and stock prices. However, profitability does not mediate the effect of solvency on stock prices. These results emphasize the importance of effective liquidity management and asset utilization in enhancing profitability and firm market value, while excessive leverage may weaken investor confidence.
References
Afrianti, D., & Purwaningsih, E. (2022). The effect of asset growth on financial performance and firm value. Journal of Business and Management Studies, 4(2), 112–121.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Barus, M., Siregar, R., & Hutabarat, L. (2024). Liquidity management and firm performance in Indonesian listed companies. Jurnal Keuangan dan Perbankan, 28(1), 45–60.
Chen, M. C., Cheng, S. J., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual Capital, 6(2), 159–176. https://doi.org/10.1108/14691930510592771
Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2022). Signaling theory: A review and assessment. Journal of Management, 48(1), 3–37.
Donaldson, L. (2001). The contingency theory of organizations. Sage Publications.
Fianti, D., Rahmawati, L., & Santoso, B. (2022). Capital structure and financial performance: Evidence from Indonesian firms. Jurnal Akuntansi dan Keuangan Indonesia, 19(2), 155–170.
Firdausi, N., Prasetyo, A., & Mahendra, R. (2024). Asset growth and profitability: Evidence from manufacturing firms in Indonesia. International Journal of Economics and Financial Issues, 14(1), 75–83.
Harahap, S., & Siregar, D. (2022). Financial performance and stock price volatility in emerging markets. Jurnal Manajemen Keuangan, 12(3), 210–225.
Hery. (2020). Analisis laporan keuangan. Grasindo.
Hery. (2022). Teori akuntansi dan laporan keuangan. Grasindo.
Istiqamah, R., Anwar, S., & Pradana, R. (2024). Liquidity and stock price reaction in Indonesian capital market. Jurnal Ilmu Ekonomi, 9(1), 88–101.
Karlina, R., Wibowo, A., & Putri, D. (2023). Asset growth and firm performance in transportation sector. Jurnal Riset Manajemen, 8(2), 134–149.
Kasmir. (2021). Analisis laporan keuangan. Rajawali Pers.
Khasanah, U., & Suwarti, T. (2022). Profitability and stock price movement in Indonesian listed companies. Jurnal Akuntansi dan Bisnis, 22(1), 55–67.
Lisdawati, R., Nugraha, M., & Putra, H. (2024). Asset growth and profitability in emerging markets: Empirical evidence from Indonesia. Asian Journal of Accounting Research, 9(1), 22–37.
Musthafa. (2021). Manajemen keuangan. Andi Publisher.
Novianti, D., & Fadillah, R. (2023). The impact of profitability on stock valuation in Indonesian capital market. Jurnal Ekonomi dan Bisnis, 16(3), 201–215.
Pratama, R., & Handayani, S. (2023). Leverage and firm value in Indonesian capital market. Jurnal Keuangan dan Perbankan, 27(4), 402–418.
Putra, A., & Dewi, L. (2021). The impact of COVID-19 on transportation sector performance. Jurnal Ekonomi Pembangunan, 19(2), 123–138.
Rahmawati, D., Suryani, T., & Nugroho, A. (2023). Macroeconomic variables and stock market performance in Indonesia. International Journal of Financial Studies, 11(2), 44.
Rismanty, F., Adi, P., & Wulandari, S. (2022). Working capital management and profitability: Evidence from Indonesia. Jurnal Akuntansi Multiparadigma, 13(1), 98–112.
Sari, D., & Nugroho, A. (2022). Rising fuel prices and corporate profitability in logistics industry. Jurnal Manajemen dan Bisnis, 18(3), 210–224.
Sari, M., & Nurhayati, I. (2021). Capital structure and firm value: Evidence from emerging markets. Jurnal Keuangan dan Perbankan, 25(2), 134–148.
Satria, M. (2022). Debt policy and financial performance in Indonesian manufacturing firms. Jurnal Riset Akuntansi dan Keuangan, 10(2), 201–215.
Spence, M. (1973). Job market signaling. Quarterly Journal of Economics, 87(3), 355–374.
Sutrisno. (2020). Manajemen keuangan teori, konsep dan aplikasi. Ekonisia.
Tania, R., Kurniawan, A., & Sari, P. (2024). Liquidity and financial stability in Indonesian public companies. Jurnal Ilmiah Akuntansi dan Keuangan, 6(1), 33–47.
Tripuspitorini, R., Hidayat, T., & Firmansyah, A. (2022). Liquidity, profitability, and firm value in Indonesian firms. Jurnal Manajemen dan Kewirausahaan, 24(1), 45–60.
Utami, W., & Rahardjo, S. (2020). The mediating role of profitability in financial performance and firm value. Jurnal Akuntansi dan Keuangan Indonesia, 17(2), 120–134.
Widhiastuti, R., Sari, L., & Nugraha, F. (2024). Stock price determinants in emerging markets: Evidence from Indonesia. International Journal of Economics and Management, 18(1), 89–105.
Wicks, A. C., Freeman, R. E., Harrison, J. S., & Parmar, B. (2023). Stakeholder theory: Concepts and strategies. Cambridge University Press.
Wulandari, S., & Mahardika, D. (2023). Profitability and stock price performance in Indonesia. Jurnal Ilmu Manajemen, 11(2), 140–155.
Copyright (c) 2026 Vera Lisdiana, Hari Gursida, Yohanes Indrayono
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish in this journal agree to the following terms:
- The authors confirm that they are the authors of the submitted article, which will be published (online) in the journal IJABO (International Journal Administration, Business & Organization) by the Asosiasi Ahli Administrasi Indonesia (A3i), Bandung, Indonesia. The author’s name will be evident in the article. The publisher makes all decisions regarding the layout and distribution of the work.
- Authors guarantee that the work is their own original creation and does not infringe any statutory or common-law copyright or any proprietary right of any third party. In case of claims by third parties, authors commit themself to defend the interests of the publisher and shall cover any potential costs.
- Authors retain copyright and grant the journal the right of first publication, with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0). This license allows the redistribution and reuse of papers provided the authorship is properly credited.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., posting it to an institutional repository or publishing it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as this can lead to productive exchanges and earlier and greater citations of published work.
