The Influence of Fundamental Factors on Stock Trading Volume and Share Prices of Conventional Finance Companies Listed on the Indonesian Stock Exchange

Abstract

This study aims to analyze the effect of fundamental factors (Financing and Profitability Ratios) on stock trading volume and share prices of conventional finance companies listed on the Indonesia Stock Exchange for the 2011-2021 periods. The sample technique used in this study was purposive sampling with 12 conventional financing companies on the IDX. The data analysis technique used is the structural equation modeling approach and path analysis with AMOS version 26 software. The results show that partially Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt to Equity Ratio (DER), Debt to Asset Ratio (DAR) has no significant effect on Trading Volume Activity (TVA). Return on Equity (ROE) has a significant effect on stock prices. Debt to Equity Ratio (DER) has a significant effect on stock prices. Trading Volume Activity (TVA) has a significant effect on stock prices. Meanwhile, Return On Assets (ROA), Net Profit Margin (NPM), and Debt to Asset Ratio (DAR) have no significant effect on stock prices. Trading Volume Activity is unable to mediate the relationship between Return on Assets, Return on Equity, Net Profit Margin, and Debt to Equity Ratio and Debt to Asset Ratio to Share Prices of Conventional Financing Companies Listed on the Indonesia Stock Exchange.