Jurnal Riset Bisnis dan Manajemen
Vol. 14 No. 2 (2021): August Edition

THE EFFECT OF FINANCIAL RATIOS ON STOCK RETURNS IN TELECOMMUNICATIONS COMPANIES

Rinto Retnadi Fauzi (Universitas Terbuka)
Nizwan Zukhri (Universitas Terbuka)
Diki (Universitas Terbuka)



Article Info

Publish Date
30 Aug 2021

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.

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Journal Info

Abbrev

jrbm

Publisher

Subject

Economics, Econometrics & Finance

Description

The journal’s aim is to foster greater understanding of advancements in all areas of business and management by providing a platform to the scholars for disseminating their research works. The journal’s welcomes empirical and theoretical research papers and literature reviews from academicians, ...