LTV, Macro Economics and ROE to Stock Return in Real Estate and Property Companies Listed on LQ 45 Period 2009 – 2017

Riko Hendrawan,Avi Avitianti

doi:10.14419/ijet.v7i4.38.27559

Abstract

The purpose of this research is to exemine the effect of Loan to Value (LTV), exchange rate, Gross Domestic Product (GDP), Interest Rate and Return on Equity (ROE) to return of property stock that entered at LQ 45 in Indonesia Stock Exchange period 2009 - 2017. Using selected 5 Real Estate and Property Companies as research samples. Panel Data Regression Tehniques were use for this research. The result of this research is LTV partially has no significant effect on stock return, partial exchange rate has no significant effect on stock return, GDP partially significant effect of stock return interest rate partially does not have significant influence retun share, ROE partially significant effect of stock return and there is simultaneously significant influence between LTV, exchange rate, GDP, interest rate and ROE to stock return.

Highlights

March 2012, Bank Indonesia (BI) began tightening its Loan to Value (LTV) policy through Bank Indonesia Circular Letter No.14 / 10 / DPNP concerning Risk Management Implementation of Banks conducting the provision of Home Ownership Credit and Motor Vehicle Credit issued on March 15, 2012
The adoption of the LTV Policy directly affected the property industry, a decline in property sales as released by the Primary Market Residential Property Price Survey conducted by the Rill Sector Statistics Division, Statistics Department of Bank Indonesia is illustrated in Graph 1.1
It can be concluded that the exchange rate (X2) partially has no significant effect Return (Y)

Summary

Introduction

March 2012, Bank Indonesia (BI) began tightening its Loan to Value (LTV) policy through Bank Indonesia Circular Letter No.14 / 10 / DPNP concerning Risk Management Implementation of Banks conducting the provision of Home Ownership Credit and Motor Vehicle Credit issued on March 15, 2012. The adoption of the LTV Policy directly affected the property industry, a decline in property sales as released by the Primary Market Residential Property Price Survey conducted by the Rill Sector Statistics Division, Statistics Department of Bank Indonesia is illustrated in Graph 1.1. Survey results show that quarterly residential property sales is slowing down from 39.80% (qtq) to 13.05% (qtq). Quoted from the Primary Market Residential Property Price Survey (IHPR), the decline in property sales volume triggered a decline in property prices. According to (Ang, 1997), there are factors that affect the return of an investment. Internal factors such as the quality and reputation of management, capital structure, corporate debt structure, and so forth. LTV policy is one of the macroeconomic variables that can affect stock returns

Objectives

Results

Conclusion