Rinto Retnadi Fauzi
Universitas Terbuka

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THE EFFECT OF FINANCIAL RATIOS ON STOCK RETURNS IN TELECOMMUNICATIONS COMPANIES Rinto Retnadi Fauzi; Nizwan Zukhri; Diki
Jurnal Riset Bisnis dan Manajemen Vol. 14 No. 2 (2021): August Edition
Publisher : Faculty of Economic and Business, University of Pasundan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23969/jrbm.v14i2.3441

Abstract

The purpose of this study was to analyze and investigate the effect of liquidity, solvency, and profitability on stock returns in telecommunications companies listed on the Indonesia Stock Exchange in 2010 - 2018. In this study, the measurement of liquidity ratio used the current ratio; the solvency ratio was measured using DAR (Debt to Asset Ratio) and DER (Debt to Equity Ratio), while the profitability ratio used ROA (Return on Asset Ratio) and ROE (Return on Equity Ratio). The results of this study indicate that liquidity which measured using current ratio had a negative but insignificant effect on stock returns, while solvency measured using DAR and DER, as well as profitability measured using ROA and ROE had a positive but insignificant effect on stock returns of telecommunications companies, respectively.