Open AccessPERAN EKSISTENSI SAHAM DI LQ45 PADA KINERJA PROFITABILITAS PERUSAHAAN
Author(s) -
Herman Karamoy,
Hizkia H. D. Tasik
Publication year - 2019
Publication title -
ekuitas
Language(s) - English
Resource type - Journals
eISSN - 2548-5024
pISSN - 1411-0393
DOI - 10.24034/j25485024.y2019.v3.i1.4117
Subject(s) - market liquidity , profitability index , index (typography) , profit margin , business , panel data , econometrics , economics , statistics , agricultural economics , finance , mathematics , computer science , world wide web
Many companies in Indonesia compete to improve the financial performance to be listed in LQ45 index. LQ45 index is the house of 45 stocks with high liquidity, big market capitalization and good financial performance. This paper aims to investigate whether the existence status of stocks in LQ45 index in the past affects the current profitability performance of the companies. This study relies on semesterly data from 19 companies dated from 2012 to 2015. Using panel data regression model of Net Profit Margin (NPM), the findings suggests that the existence of stocks in LQ45 index in previous period significantly affect the NPM. The results are robust and consistent across specifications either using fixed effect or random effect approaches. The magnitude ranges from 22,77 to 26,87 percentage points.