THE EFFECT ANALYSIS OF STOCK MARKET AND STOK’S FINANCIAL INDICATORS TO IN/OUT SHARES IN LQ-45 INDEX

Abstract

Abstract: LQ-45 is a stock market index for the Indonesia Stock Exchange. The LQ-45 index consists of 45 companies that: included in the top 60 companies with the highest market capitalization, in a regular market in the last 12 months, have been listed in the Indonesia Stock Exchange for at least 3 months, and have good financial conditions, prospect of growth, high transaction value and frequency. The aim of this study is to determine: The Effects of transaction volume, market capitalization, return of assets, debt to equity ratio toward IN/OUT of Stocks index LQ-45 period 2016-2018. Binary Logistic regression model is used as an analysis tool. The result of the study shows: Trading volume and market capitalization partially have positive and significant impact towards IN/OUT of stocks. While return of assets (ROA) and debt to equity ratio (DER) partially have positive but insignificant impact influence IN/OUT of stocks. Recommendation the company must always improve its performance to the maximum extent possible so that it always produces high profits.

Keywords:   transaction volume, market capitalization, return of asset (ROA), debt to equity ratio (DER) and in/out of stock in index LQ-45