The Effect Of Market Ratio On Stock Return In Manufacturing Companies Listed On The Indonesia Stock Exchange (IDX) Textile And Garment Subsector Period 2016-2020

Abstract

This study aims to analyze the effect of market ratios on stock returns. The sample used in this study is a manufacturing company listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period. The independent variables in this study are price to book value, price earning ratio, dividend payout ratio, where the dependent variable is stock returns. By using purposive sampling method, the authors obtained a research sample of 3 manufacturing companies from the research population of 9 manufacturing companies. The data analysis model used in this research is descriptive statistical test, classical assumption test, multiple linear regression test, and hypothesis testing. The results of this study prove that partially, the price earning ratio has a significant effect on stock returns. However, price to book value and dividend payout ratio do not have a significant effect on stock returns. Simultaneously price to book value, price earning ratio, dividend payout ratio, have an influence on stock returns.