The Relationship Between Stock Trading Volume and the Performance of the Composite Stock Price Index, with Company Profit and Loss as a Moderating Variable, on the Indonesia Stock Exchange for the Period 2020-2024

Indah Silvia Situmorang; Reka Maiyarni; Salman Jumaili

doi:10.63922/ijebir.v5i04.4480

Indah Silvia Situmorang Student, Faculty of Economics and Business, University of Jambi, Jambi, Indonesia
Reka Maiyarni Lecturer, Faculty of Economics and Business, University of Jambi, Jambi, Indonesia
Salman Jumaili Lecturer, Faculty of Economics and Business, University of Jambi, Jambi, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i04.4480

Keywords: Stock Trading Volume, Composite Stock Price Index, Company Profits and Losses, Moderation

Abstract

This study examines the relationship between stock trading volume and the Composite Stock Price Index and investigates the moderating role of corporate profit and loss among companies listed on the Indonesia Stock Exchange during 2020-2024. The sample consists of 64 companies with 320 observations. Data were analyzed using panel data regression and Moderated Regression Analysis (MRA). The results show that stock trading volume has a positive and significant relationship with the IHSG. Corporate profit and loss significantly moderates this relationship in a weakening direction, indicating that the influence of trading volume on the IHSG becomes less pronounced when profit and loss information is considered. Additional tests reveal that the relationship between trading volume and the IHSG is stronger in loss-making companies than in profitable firms. These findings support Signal Theory and Efficient Market Theory, emphasizing the importance of profit and loss information in investor decision-making and market price formation.

Keywords: Stock Trading Volume, Composite Stock Price Index, Company Profits and Losses, Moderation

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