Abstract
The purpose of this study is to analyze financial performance through Current Ratio (CR), Total Asset Turn Over (TATO), Debt to Equity Ratio (DER), Return on Equity (ROE) and macroeconomic factors through Gross Domestic Product (GDP) to stock returns. The object of research is a food and beverage company on the Indonesia Stock Exchange for the period 2015-2019. The analysis data used are financial reports, stock returns and GDP growth. The research sample of 15 companies obtained by purposive sampling technique. The data analysis technique used is Panel Data Regression Analysis with eviews version 9. The results show that Current Ratio (CR) and Debt to Equity Ratio (DER) have a significant positive effect on stock returns, while Total Asset Turn Over (TATO), Return on Equity (ROE) and Gross Domestic Product (GDP) have no significant effect on stock returns.
Highlights
The capital market provides a place for investors to invest their funds in go public companies with the aim of getting returns in the form of stock returns
The results show that Current Ratio (CR) and Debt to Equity Ratio (DER) have a significant positive effect on stock returns, while Total Asset Turn Over (TATO), Return on Equity (ROE) and Gross Domestic Product (GDP) have no significant effect on stock returns
The results showed that CR and DER had a positive and significant effect on stock returns
Summary
The capital market provides a place for investors to invest their funds in go public companies with the aim of getting returns in the form of stock returns. A large contribution to national income (GDP) makes food & beverage companies continue to be in demand by investors so that the stock prices of companies in this sector have the potential to continue to increase and have an impact on increasing stock returns. Before investors make their investment decisions, a fundamental analysis of a company's performance is needed. According to Sihombing (2018) Current Ratio describes a company's ability to meet its short-term capabilities and finance operational activities Companies must maintain their liquidity performance so that their operational activities can continue so that they have an impact on stock returns.
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