Budapest International Research and Critics Institute-Journal (BIRCI-Journal): Humanities and Social Sciences
Vol 7, No 4 (2024): Budapest International Research and Critics Institute November

The Influence of ROA, ROE, CR, and DER, on Stock Returns of Non-Banking Companies Listed on the LQ-45 Index and the Sri-Kehati Index on the Indonesian Stock Exchange 2019–2023

Santoso, Herry (Unknown)



Article Info

Publish Date
26 Nov 2024

Abstract

When investing, investors really need certain indicators to assess the company whose shares will be purchased. These indicators are analysis of financial ratios such as Profitability Ratios where only two ratios are taken, namely Return on Assets (ROA) and Return on Equity (ROE). Apart from the Profitability Ratio, the Liquidity Ratio, namely the Current Ratio (CR) and the Solvency Ratio, namely the Debt to Equity Ratio (DER) as an indicator of the health of a company. In this research, the author uses panel data regression analysis which consists of time series data and also cross-section data, where the independent variable is regressed on the dependent variable, namely stock returns. The author chose the independent variables using Profitability Ratios where the author chose from these ratios for this research the Return on Assets (ROA) Ratio and the Return on Equity (ROE) Ratio. Meanwhile, for the Liquidity Ratio, the Current Ratio (CR) is chosen and for the Solvency Ratio, the Debt to Equity Ratio (DER). The independent variables consisting of ROA, ROE, and DER have a probability value greater than the significance level of 5% so this can be interpreted as meaning that the independent variables ROA, ROE, and DER have no influence on the dependent variable, namely stock returns. However, for CR, which is also an independent variable, the probability value is 0.0008, which is smaller than the 5% significance level, so it can be concluded that CR has an effect on the dependent variable.

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Journal Info

Abbrev

birci

Publisher

Subject

Religion Arts Humanities Economics, Econometrics & Finance Social Sciences

Description

Budapest International Research and Critics Institute (BIRCI-Journal) : Humanities and Social Sciences is a peer-reviewed journal published in February, May, August and November by Budapest International Research and Critics University Journal (BIRCU-Journal). BIRCI welcomes research papers in ...