STOCK PRICE VOLATILITY IN VIEW OF PROFITABILITY AND DEBT POLICY

Abstract

The term stock price volatility is used to characterize changes in stock price. Stock price changes are erratic because they depend on the frequency and volume of trading transaction. This study intends to investigate the relationship between stock price volatility and profitability and debt management in LQ45 index companies listed on the Indonesia Stock Exchange for the 2020-2022 time frame. Basic research employing quantitative data is what this type of research entails. For the years 2020-2022, there are 135 LQ45 Index Companies listed on the Indonesia Stock Exchange. The research used 90 companies as its sample. Purposive sampling was utilized as the sample technique in this investigation. Multiple linear regression analysis is the method employed. The research findings indicate the while debt policy has no impact on stock price volatility, profitability has an impact on it.