Analysis Societal Trust, Growth Opportunity, Financial Risk, and Stock Returns

Much researchs have been done on financial factors that effect performance and firm value. The research gap in these studies is that previous studies have shown mixed results, while the role of performance as an intervening on stock returns, as another manifestation of investor reaction, is still limited. This study aims to analyze the role of performance in mediating the effect of societal trust, growth opportunity, and financial risk on stock returns in LQ45 companies on the IDX during the 2020-2025 period. Samples were drawn using a purposive sampling technique based on the consistency of companies included in the LQ45 issuer list and data completeness. The data analysis design uses panel data regression analysis. The results show that there are a positive effect of growth opportunity and a negative effect of financial risk on performance; as well as the positive effect of performance on stock returns. Performance mediates the effect of growth opportunity on stock returns. This finding, as a research novelty, indicates that societal trust, growth opportunity, and financial rik in LQ45 companies in Indonesia have not yet formed a complete value chain for stock returns through performance. The resulting value chain is only formed indirectly by growth opportunity.