The Effect of Company Growth and Capital Structure Policy on Stock Price Changes in Banking Companies Listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 Period

Abstract

This study aims to analyze the effect of company growth and capital structure policy on stock price changes in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 period. This research was motivated by the phenomenon of declining stock prices in several banking companies during the study period, indicating the influence of internal company factors on stock price movements. The independent variables are company growth and capital structure policy, while the dependent variable is stock price. A quantitative method with an associative approach was employed. The population consists of all banking companies listed on the IDX for the 2020–2024 period, with purposive sampling yielding nine companies as the research sample. Secondary data were obtained from annual financial reports and stock price data published on the official IDX website. Data were analyzed using panel data regression with EViews 12. The results indicate that company growth has a significant positive effect on stock price (significance value = 0.0000 < 0.05), and capital structure policy also has a significant positive effect on stock price (significance value = 0.0001 < 0.05). Simultaneously, both variables significantly influence stock price (Prob F-statistic = 0.000000 < 0.05). The Adjusted R-squared value of 0.6979 (69.79%) indicates that the model explains a substantial portion of the variation in stock prices. These findings suggest that sound company growth and an optimal capital structure policy can strengthen investor confidence and positively influence stock price movements in banking companies. The study is examined from the perspective of Islamic accounting, integrating principles of justice, transparency, and the avoidance of riba as stipulated by AAOIFI standards.