THE EFFECT OF CURRENT RATIO, RETURN ON ASSETS, FIRM SIZE, AND INTELLECTUAL CAPITAL ON STOCK RETURNS

Abstract

This study aims to analyze the effect of Current Ratio, Return on Assets, Firm Size, and Intellectual Capital on stock returns in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2023–2024 period. Stock returns are an important indicator of company performance and a basis for investment decisions. Current Ratio measures short-term liquidity, Return on Assets assesses profitability, Firm Size reflects scale and market confidence, while Intellectual Capital represents intangible assets such as knowledge, innovation, and relationships that support competitive advantage. This study used quantitative methods with secondary data from companies' financial and annual reports on the IDX website. The sample was selected purposively, resulting in 93 companies (139 observations), and analyzed using multiple linear regression using SPSS. The results show that Return on Assets, Firm Size, and Intellectual Capital have a positive and significant effect on stock returns, while Current Ratio has no significant effect. However, all four variables simultaneously have a significant effect on stock returns.