The Impact of Current Ratio, Debt to Equity Ratio, Return on Assets, Dividend Yield, and Market Capitalization on Stock Return (Evidence from Listed Manufacturing Companies in Indonesia Stock Exchange)

Basaria Christina Marito, Andam Dewi Sjarif

Abstract


This study aims to empirically investigate the firm’s performance on stock return. The selected firm’s performance indicators were financial ratios, market ratio and firm size. The selected financial ratio in this study was current ratio as one of liquidity ratios, debt-to-equity ratio as leverage ratios, and return on assets as profitability ratios. Dividend yield is considered as market ratio while market capitalization is considered as firm size. The period of the study was from 2012 – 2016 and the sample population of this study was 18 manufacturing companies listed on Indonesia Stock Exchange (IDX). Since 2012 – 2016, the contribution of manufacturing sector industry almost quarterly of the Indonesia Domestic Product (PDB). However since 1998 up to 2016, trend of this sector has been declining and slightly showing increment by second quarter of 2017. The panel data regression analysis with random effect model was chosen as the method to analyze it. According to the findings, firm’s performance was simultaneously influenced stock market return.

Keywords


Manufacturing Sector, Firm’s Performance, Stock Market Return, Data Panel Regression

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References


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