Effect of Liquidity and Activities with Profitability as Intervening Variables to Share Return in Manufacturing Companies Listed in Indonesia Stock Exchange

Abstract

This study aims to examine the effect of Liquidity, Activities with Profitability as an intervening variable to Return Shares in Manufacturing companies listed on the Indonesia Stock Exchange. The sample used in this research is 34 companies. This research uses secondary data with documentation technique obtained from Indonesia Capital Market Directory (ICMD). There are two similarities developed in this study. The first equation to test the effect of liquidity and activity on stock returns on manufacturing companies listed on the Indonesia Stock Exchange. While in the second equation is entered intervening variable, that is profitability to test consistency influence of liquidity and activity to stock return. The analysis technique used linear regression analysis and statistical hypothesis test and statistical F statistic.The result of hypothesis test shows that liquidity has positive and insignificant effect to stock return on manufacturing company listed in Indonesian Stock Exchange, activity has positive and insignificant effect to stock return on manufacturing company listed in Indonesia Stock Exchange. Simultaneously liquidity and activity have a significant effect on stock return on manufacturing companies listed in Indonesia Stock Exchange. The result of intervening analysis shows that liquidity and activity with profitability as intervening variable indirectly affect stock return on manufacturing companies listed in Indonesia Stock Exchange