IMPACT OF FINANCIAL PROFITABILITY RATIO TO THE STOCK RETURNS OF TELECOMMUNICATION COMPANY DURING THE COVID-19 PANDEMIC IN INDONESIA

• Main Author: Putri Pratiwi, Adelia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79464
• Institution: Institut Teknologi Bandung

The COVID-19 pandemic is a significant global crisis with profound and alarming effects on societies worldwide. The repercussions have led to a substantial loss of life across the globe and compelled individuals to embrace a new and unprecedented way of living. Beyond its influence on lifestyle, this pandemic has a detrimental impact on various facets of people's lives within the economic and business domains. Therefore, this research examined the ramifications of the COVID-19 pandemic on the financial performance and stock returns of companies operating in the telecommunications sector in Indonesia. In this case, it focuses on the profitability ratio. The independent variables include on this study are ROA, ROE, ROCE, ROIC, NPM, OPM, and GPM while the stock return becomes the dependent variables. The data is processed using panel data regression and divided the timeline into 3 periods, pre-pandemic periods (2017-2019) and post- pandemic periods (2020-2022) and overall periods (2017-2022). This study found that in overall period model, pre-pandemic, and post pandemic model, none of the dependent variables significantly affect stock returns partially. Simultaneously, the profitability financial ratios also do not affect stock return significantly.