Analysis of the Influence of Company Internal Factors on PBV and Their Impact on Stock Prices

Abstract

Purpose: This study aims to examine the impact of internal factors, including Liquidity, Solvency/Leverage, Profitability, and Cash Flow, on company value (PBV) and stock prices of state-owned companies listed on the Indonesian Stock Exchange from 2016 to 2018. Methodology: 19 companies were selected as sample based on specific criteria. A quantitative approach is used to analyze the data through multiple regression analysis. Main findings: Liquidity, Solvency, Profitability, and Cash Flow significantly affect PBV when considered together. However, only CR has a significant individual impact on PBV. These factors significantly influence stock prices. Among these, CR and Cash Flow do not have a significant effect on stock prices, while DER, NPM, and PBV significantly impact stock prices. Implications: Investors should closely monitor liquidity and profitability indicators, as these factors significantly influence stock prices. Companies can improve their stock market performance by enhancing liquidity and profitability, while also considering cash flow management.