The Effect of Return on Assets, Net Profit Margin, and Debt to Equity Ratio on Stock Returns
DOI:
https://doi.org/10.55927/cjas.v1i2.7374Keywords:
Return on Assets, Net Profit Margin, Debt to Equity Ratio, Stock ReturnAbstract
This study seeks to evaluate the influence of return on assets (ROA), net profit margin (NPM), and debt-to-equity ratio (DER) on the stock returns of manufacturing companies within the consumer goods sector listed on the Indonesia Stock Exchange (IDX) during the period from 2018 to 2021. The investigation encompasses a population of 74 companies within this industry, and employing purposive sampling, a total of 8 companies were chosen as the sample. The research employs a quantitative analysis, specifically adopting an associative research approach. The findings reveal that both ROA and NPM exert a significant individual impact on stock returns, whereas the DER variable does not exhibit a statistically significant influence. Moreover, when considered collectively, the three variables (ROA, NPM, DER) demonstrate a substantial combined effect on stock returns.
Downloads
References
Arifin, Fitriani, N. & Agustami, S. 2016. The Effect of Liquidity, Solvency, Profitability, Market Ratio , and Company Size on Stock Price (Study on Plantation Subsector companies listed on IDX in 2010-2014 ). Journal of Accounting and Finance Research, Vol 4 No 3.
Brigham, Eugene F and Joel F Houston. 2014. Fundamentals of Financial Management Volume 1.Jakarta:Salemba Empat.
Darmaji, Tjiptono and Fakhruddin. 2012. Capital Market in Indonesia. Third edition . Jakarta: Salemba Empat.
Dini, Astri Wulan, Ii. I. 2010. The effect of Net Profit Margin (NPM), Return on Assets (ROA) and Return on Equity (ROE) on stock prices listed in the LQ45 issuer index for 2008 – 2010.
Hartono, Jogiyanto. 2014. Portfolio Theory and Investment Analysis. Ninth Edition. BPFE Publisher: Yogyakarta.
Indriantoro, N., & Supomo, B. 2012. Business Research Methodology for Accounting and Management. Yogyakarta: BPFE UGM.
Izuddin, M. 2018. Analysis of the Influence of Fundamental Factors on Stock Return of Construction Companies (Study on Shares of Companies Listed Active in LQ-45 on IDX Periode 2011-2018 ). Ekbang 3 , 3(1), 1–12.
Jelie D. Wehantouw, Parengkuan T. & Jeffry L.A Tampenawas. 2017. Effect of Capital Structure, Company Size and Probability on Share Price in Food and Beverage Industry Companies listed in BEI for the period 2012-2015 . EMBA Journal : Journal of Economic Research, Management, Business and Accounting.
Manoppo, et.al. 2017. The Effect of Current Ratio, DER, ROA and NPM on Share Prices in Food And Beverages Companies listed on the IDX for the period 2013-2015 . EMBA Journal, Vol 5 No 2 pp 1813-1822.
Meryati, A. 2020. The Influence of Fundamental Factors on Stock Return and Its Impact on the Value of Automotive Companies in Indonesia. JIMF ( Forkamma Management Scientific Journal).
Ningsih, A. T., &; Cheisviyanny, C. 2019. Corporate Social Responsibility Disclosure Analysis of PT. Bukit Asam Tbk Based on Global Reporting Initiatives (GRI) and Its Relation to PROPER. Journal of Ex-Exploration Accounting, 1(3), Series A, 846-864.
Nordiana, Ariska &; Budiyanto. 2017. The Effect of DER, ROA and ROE on Share Prices in Food and Beverage Companies listed on the IDX for the period 2013-2015 . Journal of Management Science and Research, Vol 6 No 2.
Nurlia, N., & Juwari, J. 2019. The effect of Return on Assets, Return on Equity, Earnings Per Share and Current Ratio on Share Prices in Automotive and Component Sub-Sector Companies listed on the IDX. Journal of GeoEconomics, 10(1), 57–73.
Pambudi M. Fikri 2021. Theinfluence of Return On assets, Return On Equity, Net Profit margin and Quick ratio to Shares of Energy Sector Companies During the Covid-19 Pandemic. Sunan Ampel State Islamic University Surrabaya.
Prime, B. 2020. Last year , shares of the consumer goods sector dippredictably rebounded this year. Retrieved December 10, 2022, from Kontan.co.id: News data financial tools.
Tandelilin, Eduard. 2001. Investment Analysis and Risk Management. Yogyakarta: BPFE.
Tarmizi, Rosmiati., Soedarsa, H.G., Indrayenti, and Andriyanto D. 2018. The Effect of Liquidity and Profitability on Stock Returns. Journal of Accounting and Finance. Vol. 9, No. 1.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Mediaty, Abdul Hamid Habbe, Yunus
![Creative Commons License](http://i.creativecommons.org/l/by/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution 4.0 International License.