Google trend and stock market: Does it matter?

Authors

  • Ratih Kusumawardhani Faculty of Economics,University of Sarjanawiyata Tamansiswa, Yogyakarta, Indonesia123
  • Risal Rinofah Faculty of Economics,University of Sarjanawiyata Tamansiswa, Yogyakarta, Indonesia123
  • Dandi Rukmana Faculty of Economics,University of Sarjanawiyata Tamansiswa, Yogyakarta, Indonesia123

DOI:

https://doi.org/10.22219/jibe.v5i02.18678

Keywords:

Current Ratio; Debt to Equity Ratio; Return On Asset; Google Search Volume; Stock Return

Abstract

This study aims to determine the effect of the financial ratio and Google search volume (GSV) on stock returns of LQ-45 companies listed on the IDX for the 2015-2020 period. The study used purposive sampling and applied multiple linear regression analysis. The results showed that the Current Ratio (CR) and Return on Assets (ROA) insignificantly affect stock returns. Meanwhile, the Debt-to-Equity Ratio (DER) hurts stock returns significantly. This finding implies that signals from search data volume can help build profitable trading strategies.

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Published

2022-08-22

Issue

Vol. 5 No. 02 (2021): Journal of Innovation in Business and Economics

Section

Article

License

Copyright (c) 2022 Ratih Kusumawardhani, Risal Rinofah, Dandi Rukmana

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.