Abstract

This study aims to determine the Effect of Financial Performance on Food and Beverages Company Stock Returns on the Indonesia Stock Exchange in the 2015-2019 Period. The research method used is an associative method that aims to determine the effect or also the relationship between two or more variables. Samples were taken by techniquepurposive samplingas many as 12 companies from a population of 15 food and beverage companies on the Indonesia Stock Exchange, while the research data collection instrument for each variable is to use the ratio of financial performance and stock returns. The results of the research analysis found that the model used is the Fixed Effect Model with the results: (1) There is no significant effect between the ratio of liquidity to stock returns; (2) There is no significant effect between the ratio of activity to stock returns; (3) There is no significant effect between leverage ratio on stock returns; (4) There is a significant influence between the ratio of profitability to stock returns; (5) There is a significant influence between market value on stock returns

Highlights

  • The development of the capital market in Indonesia has been very advanced and growing rapidly, as evidenced by the increasing number of companies listed on the Indonesian capital market until 2017, there were 539 companies listed as public companies on the capital market

  • The results of the research analysis found that the model used is the Fixed Effect Model with the results: (1) There is no significant effect between the ratio of liquidity to stock returns; (2) There is no significant effect between the ratio of activity to stock returns; (3) There is no significant effect between leverage ratio on stock returns; (4) There is a significant influence between the ratio of profitability to stock returns; (5) There is a significant influence between market value on stock returns

  • Effect of Effect of Financial Performance on Food and Beverages Company Stock Returns on the Indonesia Stock Exchange in the 2015-2019 Period" can draw conclusions as below: 1) There is no significant effect of liquidity ratios on stock returns, meaning liquidity ratios have no effect on stock returns

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Summary

Introduction

The development of the capital market in Indonesia has been very advanced and growing rapidly, as evidenced by the increasing number of companies listed on the Indonesian capital market until 2017, there were 539 companies listed as public companies on the capital market. Minister of Industry Airlangga Hartanto said that currently Indonesia's industrial sector was experiencing significant development. Even based on data from the United Nations Industrial Development Organization (UNIDO), Indonesia's manufacturing industry sector ranks 9th in 2016, Indonesia's position measured by the added value generated by the manufacturing industry increased from 18th position 1990 to 9th position in 2016 While based on Indonesia's competitiveness in the 2017-2018 period it is ranked 36th out of 137 countries, while in terms of ease of doing business, Indonesia is in the midfield. Where Indonesia is currently ranked 72 out of 190 countries. Where Indonesia is currently ranked 72 out of 190 countries. (Source:www.economy.okezone.com)

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