Journal of Business and Management
Vol 11, No 1 (2022)

Book-To-Market Ratio, Dividend Yield and Price- Earnings Ratio Effects Towards Stock Return: Evidence from The Property and Real Estate Stocks in Indonesia




Article Info

Publish Date
08 Nov 2022

Abstract

In 2020, the pandemic has triggered a lot of new investors to invest in the stock market. Stocks are preferred as an investment because if done right, stocks can offer high returns. Several companies desired by investors are property firms, because they can offer good returns when the time is right. Moreover, property sector is one of the most growing sectors in Indonesia, with growth rate exceeding the GDP. This makes stocks of this sector interesting. Nevertheless, stock investment is a medium to high risk investment, and while it can give investors higher returns it can also give higher losses. New investors need to do analysis before putting their money on certain stocks. Therefore, the research’s objective is to analyze the relationship between financial ratios such as book-to-market ratio, dividendyield and price-earnings ratio towards property stocks returns in Indonesia from 2015-2019. Secondary data, collected from various sources are used as references. The data were analyzed using panel data regression analysis. This study reveals that the book-to-market ratio has a significant negative correlation with stock returns. Dividend yield and price-earnings ratio has negative, insignificant relationship.Keywords: book-to-market ratio, dividend yield, price-earnings ratio, stock returns, property and real estate stocks. 

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Journal Info

Abbrev

jbm

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Journal of Business and Management (JBM)is an online journal that is published three times a year. It publishes research papers that give rigorous theoretical and practical insight of business and managament. JBM aims to provide a forum for the dissemination of theory application and research in all ...