JER
Vol. 5 No. 2 (2022): September-April

The Effect of Profitability and Leverage on Stock Returns in Banking Companies in Indonesia

Abdul Rahman (Sekolah Tinggi Ilmu Ekonomi Wira Bhakti, Makassar)



Article Info

Publish Date
30 Sep 2022

Abstract

This study analyzes the Effect of Profitability and Leverage on Stock Returns in Banking Companies Listed on the Indonesia Stock Exchange. The population used in this study were banking companies listed on the Indonesia Stock Exchange during 2013-2017, totaling eight companies. The type of data used is secondary data originating from the publication of annual reports of Banking Companies Listed on the Indonesia Stock Exchange for the 2013-2017 period. The analysis technique uses multiple linear regression analysis. The results showed that only the Return on Equity variable partially had a positive and significant effect on stock returns with an ROE value of less than 0.05. Meanwhile, the Debt-to-Equity Ratio variable negatively and significantly affects stock returns with a DER value of less than 0.05. The coefficient of determination shows a value of 0.634. This means that 63.4% of Return on Equity (ROE) is explained by the Profitability and Debt To Equity (DER) variables or Leverage variables. The remaining 36.6% is influenced by other factors not included in this research model.

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Journal Info
JER

Abbrev

JER

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Jurnal Economic Resource_(JER) is open access. This journal is published in _ March & September. Journal of Economic Resources|e-ISSN 2620-6196] is a peer-reviewed journal published twice a year (March & September) by the Faculty of Economics and Business, Universitas Muslim Indonesia_UMI. Journal ...