EXCHANGE RATE MODERATION OF STOCK RETURN: IMPLICATION FOR ORGANIZATIONAL PROFITABILITY, LIQUIDITY AND SOLVABILITY

Abstract

The objective of this research is to analyze the effect of profitability, liquidity and solvability on stock return with exchange rate as moderation variable. Research population is 23 food & beverage companies listed at the Indonesia Stock Exchange on the period 2016-2019. The type of the data was secondary data acquired from the annual financial statements displayed on the websites of Indonesia Stock Exchange and Bank of Indonesia. Sample was obtained with saturated sampling technique or usually known as census. Data analysis techniques were multiple regression analysis applied on panel data and also Moderated Regression Analysis (MRA). Result of research showed that return on assets, Current Ratio, and debt to equity ratio had positive and significant effect on stock return. Exchange rate moderated the relationship of profitability on stock return. Exchange rate did not moderate the relationship of liquidity and solvability on stock return.