Assessing Financial Performance of Issuer LQ 45 in the IDX at Period 2002-2006

Abstract

LQ 45 indexes is an index consisting of 45 shares of stocks that have a high liquidity and also consider the capitalization of stock market shares are. Financial performance is an illustration of achieving financial success on the company. Financial performance on the issuers of LQ 45 during the period 2002 - 2006 experienced an increase in the different areas of each issuer. This can occur because of action for investors who speculate, economic conditions in the country, conditions in the financial performance of issuers LQ 45 and the appreciation of the stock that investors of the stock issuers LQ 45 that active transactions in the Indonesian capital market. Results from this research can be concluded that there are six values of the financial ratio (QR, DER, ROE, ITO, PBV, and PER), which shows an improvement in financial performance of issuers LQ 45 during the period 2002-2006, and only the value of the ratio of the market assessment can increased the most dominant performance in the financial of issuers LQ 45.

Keywords: liquidity ratio, leverage ratio, profitability ratio, activity ratio and the market based ratio

JEL Classification: E44, F3, F36, G15