INFLUENCE OF GOODWILL AND LIABILITIES ON THE STOCK PRICE OF COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE IN THE FOOD AND BEVERAGE SUBSECTOR

(Empirical Study on Food and Beverage Subsector Companies Listed on the Indonesia Stock Exchange (IDX) in 2020, 2021 and 2022)

Abstract

This research aims to analyze the influence of reported Goodwill and Liabilities in the financial statements of companies listed on theIndonesia Stock Exchange (IDX) in the food and beverage sector on stock prices. Through data processing and analysis, it was foundthat Goodwill has a significant positive impact on stock prices.  Goodwill in financial statements reflects the intangible assets'additional value, such as a strong reputation, a robust brand, customer relationships, and future growth potential. Investors believe that the presence of Goodwill can drive company growth and strengthen investor confidence in the company's prospects, ultimatelyboosting stock demand and increasing stock prices. Moreover, an interesting finding is that reported Liabilities in the financialstatements of companies also have a positive influence on stock prices, even though Liabilities typically have a negative impact onstock prices. The use of liabilities by companies can result in financial leverage that enhances returns for shareholders. Debtutilization also enables companies to undertake more aggressive investments and expansions, enhancing attractiveness for investors.However, although the regression coefficient for Liabilities is positively valued, the analysis results indicate that the impact ofLiabilities on stock prices is not significant at a 5% significance level. Nevertheless, there is an indication that an increase inLiabilities can contribute positively to stock prices, though not as significantly as Goodwill. The results of this research providecrucial insights for investors, market participants, and decision-makers in understanding the factors influencing company stockprices in the food and beverage sector of the IDX. These findings underscore the importance of Goodwill in reinforcing positiveinvestor perceptions of growth and company prospects. Furthermore, despite not yet being significant, Liabilities can also make a positive contribution to stock prices, indicating potential positive influences to explore in future research.