Open AccessEffect of Financial Ratio on Return of Shares on LQ45 Companies Listed on Indonesia Stock Exchange
Author(s) -
Romlina Romlina,
Syahril Effendi
Publication year - 2020
Publication title -
international journal of management and business
Language(s) - English
Resource type - Journals
ISSN - 2722-4953
DOI - 10.46643/ijmb.v1i2.44
Subject(s) - debt to equity ratio , stock exchange , current ratio , return on equity , econometrics , stock (firearms) , business , variables , economics , equity ratio , financial economics , population , statistics , finance , mathematics , geography , demography , archaeology , sociology , nonprobability sampling
The purpose of this study was to determine the Effect of Financial Ratios on Stock Returns on LQ45 Companies Listed on the Indonesia Stock Exchange. The independent variables used are Financial Ratios. The dependent variable used is Stock Return. The population in this study is the Current Ratio, Return on Equity, Debt to Equity Ratio, and Stock Return data on LQ45 companies listed on the Indonesia Stock Exchange for 5 years from 2015-2019. The sample in this study is LQ45 companies listed on the Indonesia Stock Exchange (IDX). Data analysis techniques in this study include multiple linear regression. The test results in this study indicate that the Current Ratio variable has no significant effect on Stock Return. From the results of testing the variables above, the Current Ratio shows the calculated T value of -0.242 T value of the table 2.016 with a significance number 0.810> 0.05. The Return on Equity variable influences the Stock Return. From the results of testing the variables above, Return on Equity shows that the calculated T value of 2.232> T table value of 2.016 with a significance number of 0.031 T table value of 2.016 with a significance number of 0.000 F table of 3.21.