The Effect of Profitability and Liquidity on Stock Prices with Research and Development Intensity as a Moderating Variable in Food and Beverage Sub-Sector Manufacturing Companies Listed on the IDX for the 2018-2022 Period

Abstract

The background of this study aims to examine the effect of profitability and liquidity on stock prices by using research and development intensity as a moderating variable in manufacturing companies in the food and beverage industry subsector. Researchers used a sample of companies with several criteria, including companies that publish complete financial reports, include the allocation of research and development activity costs during 2018-2022. Researchers used several methods in this study. First, multiple regression to see the effect of the two independent variables on the dependent variable. Second, using the MRA (Moderated Regression Analysis) method to test the moderation variable. The results of research and data analysis show: 1) Profitability has no effect on Stock Price, 2) Liquidity has a negative effect on Stock Price, 3) Research and Development Intensity does not moderate the effect of Profitability on Stock Price, and 4) Research and Development Intensity moderates the effect of Liquidity on Stock Price. The limitations of this study include: First, this research cannot be assessed for all aspects of business in companies on the IDX, especially the food and beverage industry manufacturing sector. This is because this research is limited by several things, the first is that when the research was conducted, there was an extreme change in conditions in 2020 when the COVID-19 pandemic was sweeping the world, especially Indonesia. Second, information on the amount of funds allocated for research and development is limited, because not all companies record or disclose the funds they allocate for research
and development activities.

Keywords: : Stock Price, Profitablity, Liquidity, Research and Development Intensity, Moderation