The Effect of Profitability and Trading Volume Activity on Stock Prices in Energy Sector Companies on the Indonesia Stock Exchange

Authors : Salsabila Rahma Oktavia; I Gusti Agung Arista; I Nyoman Nugraha Ardana Putra
article cite 0 Year 2026
source: Asian Journal of Management Entrepreneurship and Social Science
Abstract

This study aims to analyze the effect of Profitability proxied by Return on Equity (ROE) on Stock Prices with Trading Volume Activity (TVA) as a mediating variable in energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020-2024 period. The population of this study includes all energy companies, with the sampling technique using purposive sampling, resulting in 110 observations. The results show that Profitability has a positive and significant effect on Stock Prices, but has a significant negative effect on Trading Volume Activity. Another finding shows that Trading Volume Activity has a significant negative effect on Stock Prices. Based on mediation testing using the Sobel test, Trading Volume Activity was not proven to mediate the effect of Profitability on Stock Prices. This indicates that investors in the energy sector tend to respond directly to fundamental information in determining stock prices rather than through the mechanism of trading volume activity.

Concepts :
Financial Analysis and Corporate Governance
Corporate Governance and Financial Management
Corporate Social Responsibility Disclosure
article cite 0 Year 2026 source Asian Journal of Management Entrepreneurship and Social Science
Access to Document
10.63922/ajmesc.v6i02.1780 Open Access Link
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