The Effect of Changes in Long-Term Liabilities on the Stock Price of PT Telekomunikasi Indonesia Tbk

Abstract

This study aims to examine the effect of long-term liabilities on the stock price of PT Telekomunikasi Indonesia Tbk over the 2017–2024 period using a simple linear regression approach. The independent variable, long-term liabilities, is analyzed to assess its contribution to stock price movements based on the company’s quarterly historical data. The regression results indicate a negative coefficient of –0.02396392, suggesting that an increase in long-term liabilities tends to be followed by a decline in stock price. Nevertheless, the p-value of 0.09257457 demonstrates that this relationship is not statistically significant at the 5 percent significance level. This finding is further reinforced by the ANOVA test, where the Significance F value of 0.09257457 indicates that the regression model as a whole is not statistically significant. The coefficient of determination (R Square = 0.0977) reveals that only approximately 9.77% of stock price variation can be explained by long-term liabilities, while the remaining portion is influenced by other factors such as macroeconomic conditions, market sentiment, and the firm’s operational performance. The negative regression coefficient is theoretically consistent with capital structure theory, financial risk perspectives, and Signaling Theory, which posit that higher long-term leverage may heighten perceived investor risk. However, its statistical insignificance suggests that long-term liabilities do not serve as the primary determinant of PT Telekomunikasi Indonesia Tbk’s stock price during the observed period.