This study aims to analyze the effect of institutional ownership and capital structure on stock prices, with mediating role of profitability. The sample used was 34 consumer goods industry companies listed on the Indonesia Stock Exchange in 2020 - 2022. This study was tested using multiple linear regression analysis and the Sobel test to prove the proposed hypothesis. The study results indicate that institutional ownership, capital structure, and profitability partially have a positive and significant effect on stock prices. Institutional ownership has a positive and significant impact on profitability, and capital structure has a negative and significant effect on profitability. The results of the mediation test are obtained if profitability can mediate the effect of institutional ownership on stock prices and profitability can mediate the effect of capital structure on stock prices.
Hikmah1*, Muhammad Kholil Mubarok2, Susetyo Darmanto3 (Thu,) studied this question.