The Influence of Liquidity Ratio, Solvency Ratio, Profitability Ratio, Market Value Ratio, and Total Asset on Stock Return in Companies Listed in the Indonesia Stock Exchange JII Index 2016-2021

Indonesia, the largest Muslim population in the world, has seen an increase in businesses offering Sharia-based products to attract consumers. In a Sharia economy, financial and business transactions must comply with Sharia law, which prohibits usury (interest), gharar (uncertainty), and maysir (gambling). The Jakarta Islamic Index (JII) was created as a stock index for investors looking to invest in companies that adhere to Sharia principles in the Indonesian capital market. The JII comprises 30 Sharia-compliant companies selected based on liquidity and adherence to Sharia principles. Unfortunately, the JII index value has been declining over the years compared to other indexes. Exploring this phenomenon, this study aims to examine the influence of liquidity ratio, solvency ratio, profitability ratio, market value ratio, and total asset on stock returns in companies listed in the JII (Jakarta Islamic Index) Index from 2016-2021 utilising secondary data variables simultaneously and partially to the company’s Stock Return and which variables gave the dominant influence on Stock Return. It provided valuable insights into helping investors and companies make informed decisions in the capital market. The sample in this study is 28 companies listed in the JII Index. The results of this study indicate that the variable profitability ratios and market value ratios have a significant influence on increasing the company’s stock return variables, while the variables of liquidity ratios, solvency ratios, and total assets do not have a significant effect on companies listed on the Indonesia Stock Exchange JII Index in 2016-2021.