STOCK PRICE DYNAMICS IN TECHNOLOGY COMPANIES : THE ROLE OF PROFITABILITY, LEVERAGE AND FIRM SIZE
Keywords:
Stock Price, Profitability, Financial Leverage, Firm Size
Abstract
This research investigates the impact of profitability, financial leverage, and firm size on the stock prices of technology firms listed on the Indonesia Stock Exchange from 2021 to 2024. A quantitative research design is applied using secondary data derived from companies’ annual financial reports and stock price records. The study examines 29 technology companies, yielding 116 firm-year observations selected through purposive sampling. Descriptive statistical analysis and multiple linear regression are employed to analyze the data. The findings reveal that firm size exerts a positive and significant influence on stock prices, whereas profitability and financial leverage show no significant effect. Collectively, the independent variables explain only a limited proportion of stock price fluctuations. These results suggest that stock price movements in the technology sector are driven more by company scale than by short-term financial performance indicators. This study offers valuable implications for investors, corporate management, and academics in assessing stock price dynamics within Indonesia’s technology industry.
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Wenni Br. Tampubolon, Robinhot Gultom, & Rintan Saragih. (2025). The Influence of Firm Size, Liquidity, Profitability, Business Risk, and Growth on Capital Structure in The Industrial Sector. Jurnal Ilmu Manajemen, Ekonomi Dan Kewirausahaan, 5(2), 345–359. https://doi.org/10.55606/jimek.v5i2.6279
Ameliany, N., Sjafruddin, Sufi, & Iryani, L. (2022). The Impact of Industry 4.0 in Responding to the Digital Economy’s Potential in Indonesia at Pandemic Covid 19. https://doi.org/10.2991/assehr.k.220302.051
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS. Badan Penerbit Universitas Diponegoro.
Handayani, S. R. D., Yusnita, R. T., & Oktaviani, N. F. (2025). The Effect Of Company Size, Profitability, Leverage On Company Value (Case Study Of Technology Sector Companies Listed on the Indonesian Stock Exchange 2020-2022). Jurnal Pusat Manajemen, 2(1), 27–42. https://doi.org/10.37676/jpm.v2i1.589
Heller, D., Karapanagiotis, P., & Nilsen, Ø. A. (2025). Small and vulnerable during crises? Firm size and financing constraint dynamics. Small Business Economics, 65(1), 451–473. https://doi.org/10.1007/s11187-024-00996-y
Indonesia Stock Exchange. (2025, October 6). Capital market investor count reaches
19.15 million SID as of October 2025.
Indradewa, R., & Sri Damayanti, A. (2025). The Influence of Profitability Leverage and Company Size on Stock Prices in Energy Companies on IDX. Jurnal Ilmiah Manajemen Kesatuan, 13(2), 1149–1158. https://doi.org/10.37641/jimkes.v13i2.3127
Irdawati, Ng, S., Safira, R. D., Prananingrum, D. K., & Azizi, M. (2023). Efektivitas return on asset terhadap return saham pada perusahaan: studi manajemen keuangan. Entrepreneurship Bisnis Manajemen Akuntansi (E-BISMA), 21–31. https://doi.org/10.37631/ebisma.v4i1.834
Kasmir. (2021). Analisis Laporan Keuangan. Rajawali Pers.
Kuncoro, M. (2018). Metode riset untuk bisnis dan ekonomi. Erlangga.
Narayanti, N. P. L., & Gayatri, G. (2020). Pengaruh Kebijakan Dividen Dan Profitabilitas Terhadap Harga Saham Emiten LQ 45 Tahun 2009-2018. E-Jurnal Akuntansi, 30(2),
528. https://doi.org/10.24843/EJA.2020.v30.i02.p19
Owusu, N. A., Raphael, H. F., & Joel, T. N. (2021). Agency Costs and the Power of “Apply and Explain” from South Africa. Journal of Financial Risk Management, 10(04), 487–515. https://doi.org/10.4236/jfrm.2021.104026
Pangaribuan, M. A., Siregar, F. A., Muda, I., & Abdullah, N. M. H. (2025). Detecting Financial Distress in the Technology Industry: The Moderating Role of Managerial Ownership. JASa (Jurnal Akuntansi, Audit Dan Sistem Informasi Akuntansi), 9(2), 304–312. https://doi.org/10.36555/jasa.v9i2.2861
Ratnaningtyas, D., Chandrarin, G., & Subiyantoro, E. (2021). Effect of Performance Factors to Increase Company Value. International Journal of Advances in Scientific Research and Engineering, 07(09), 43–47. https://doi.org/10.31695/ijasre.2021.34060
S, S., Abdullah, M. W., & Obie, M. (2020). The Effect of Current Ratio and Debt to Asset Ratio on Net Profit Margin and Stock Prices: A Study of Basic Industry and Chemicals Companies. International Journal of Scientific Research in Science and Technology, 282–294. https://doi.org/10.32628/IJSRST207561
Sengkey, R. R., Gamaliel, H., & Kalalo, M. Y. B. (2025). The Effect of Asset Structure, Growth Opportunity, and Sustainability Report on Stock Price. East Asian Journal of Multidisciplinary Research, 4(4). https://doi.org/10.55927/eajmr.v4i4.94
Sholihah, E., & Damayanti, S. (2025). Impact of Institutional Ownership, Debt to Equity Ratio, and Current Ratio on Stock Prices in Indonesian Transportation Companies (2017–2023). ECo-Fin, 7(1), 416–426. https://doi.org/10.32877/ef.v7i1.2145
Silitonga, J. E., Izzati, D., Zahrani, V. A., & Panggabean, F. Y. (2025). The Effect of Financial Statements on Investment Decisions: Case Study of 10 Public Companies. Journal of Advances in Accounting, Economics, and Management, 2(4), 14. https://doi.org/10.47134/aaem.v2i4.742
Sinaga, J. B. L. A. B., Bradley, B., Susanti, S., & Pricilia, L. (2021). Analisis Likuiditas, Solvabilitas, Profitabilitas, Kepemilikan Instusional dan Ukuran Perusahaan Terhadap Harga Saham pada Perusahaan Manufaktur. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 5(2)(1208–1222).
Sugiyono. (2020). Metode penelitian kuantitatif, kualitatif, dan R&D. Alfabeta. Sungkar, H. L., Budi Santoso, S., Purwidianti, W., & Hariyanto, E. (2025). The Effect of
Financial Ratios and Company Size on Stock Price (Empirical Study on Jakarta Islamic Index 70). International Journal of Management Science and Information Technology, 5(1), 97–106. https://doi.org/10.35870/ijmsit.v5i1.3637
Triana, M., & Debbie, C. (2025). The Effect of Profitability on Stock Prices of LQ45 Firms. CAKRAWALA : Management Science Journal, 2(3), 1–17. https://doi.org/10.63541/08s29f71
Umbaran, Q., Noveria, A., & Damayanti, S. M. (2024). Stock Valuation Analysis of Technology Sector Companies Listed in Indonesia Stock Exchange in the Year 2018-2022. International Journal of Current Science Research and Review, 07(08). https://doi.org/10.47191/ijcsrr/V7-i8-35
Wenni Br. Tampubolon, Robinhot Gultom, & Rintan Saragih. (2025). The Influence of Firm Size, Liquidity, Profitability, Business Risk, and Growth on Capital Structure in The Industrial Sector. Jurnal Ilmu Manajemen, Ekonomi Dan Kewirausahaan, 5(2), 345–359. https://doi.org/10.55606/jimek.v5i2.6279
Published
2026-04-19
How to Cite
Firmansyah, T. (2026). STOCK PRICE DYNAMICS IN TECHNOLOGY COMPANIES : THE ROLE OF PROFITABILITY, LEVERAGE AND FIRM SIZE. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 10(1), 2686-2698. https://doi.org/10.31955/mea.v10i1.7371
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