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THE EFFECT OF RETURN ON ASSETS, RETURN ON EQUITY, AND NET PROFIT MARGIN ON STOCK PRICES IN FOOD AND BEVERAGE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2019-2021 PERIOD Ilyas, Andi Alfiyah; Haeruddin, M. Ikhwan Maulana; Anwar; Sahabuddin, Romansyah; Musa, Muh. Ichwan
JOURNAL OF MANAGEMENT, ACCOUNTING, GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES Vol. 2 No. 3 (2023): JUNE
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/marginal.v2i3.704

Abstract

Fundamental analysis is a widely used approach for predicting stock price movements. This study aims to investigate the impact of return on assets (ROA), return on equity (ROE), and net profit margin (NPM) on the stock prices of food and beverage companies listed on the Indonesia Stock Exchange during the period of 2019-2021. The research is based on secondary data from 84 samples. The data analysis employs multiple linear regression using the SPSS version 22 application. The findings reveal that return on assets and net profit margin do not exhibit significant effects and have a negative influence on stock prices. Conversely, return on equity demonstrates a significant and positive correlation with stock prices. Overall, the study indicates that ROA, ROE, and NPM significantly impact stock prices. As a recommendation, investors should closely analyze ROA, ROE, NPM, and stock price movements to enhance their profitability.