The Impact Of The Capital Structure And Company's Profitability On Share Prices

Abstract

The purpose of this study is to evaluate and assess how share price is impacted by capital structure and company profitability. This study employed a quantitative research design, utilizing secondary data from the Indonesia Stock Exchange to assess the impact of capital structure and profitability on stock prices. Purposive sampling techniques were used to gather data, and multiple linear regression analysis was used to evaluate the hypotheses. The study's findings indicate that stock prices are somewhat influenced by the capital structure, which includes measures of the debt to assets ratio, long debt to equity ratio, and long debt to assets ratio. Profitability with partial return on equity indicators has a significant effect on stock prices and profitability with gross profit margin and net profit margin indicators partially does not have a significant effect. Simultaneously, capital structure and profitability have a significant influence on share prices