Abstract

The development of increasingly stringent business world in Indonesia will create an increasingly sharp competition between companies. Firms in the industry in Indonesia is a land for investors to invest capital to be invested in various forms of securities. So it is not wrong for the company's various aspects and types become part of the capital market. This study was conducted to determine the effect of ROE, DER and PBV to Stock Return on Telecommunications Sector Sub Listed in Indonesia Stock Exchange. This study uses annual data for the observation period from 2014 until 2018. The research type is descriptive causality. The data used is the data panel that is a combination of annual time series data and cross section were processed using panel data regression analysis. The population is all Sub-Sector Telecommunications listed in Indonesia Stock Exchange from 2014 until 2018 the number of 5 companies. The sampling technique used purposive sampling, found a sample of four companies with the observation of 5 years in order to obtain total observation as much as 20. Data were obtained from the Indonesia Stock Exchange, and Yahoo Finance. Analysis of the data in this study is panel data regression. The model used is the Common Effect Model. The analysis showed that the ROE does not have a significant effect on stock returns, DER has no significant effect on stock returns, while PBV positive and significant effect Stock Return on Telecommunications Sector Sub Listed in Indonesia Stock Exchange.

Highlights

  • The development of increasingly stringent business world in Indonesia will create an increasingly sharp competition between companies

  • This study was conducted to determine the effect of Return On Equity (ROE), Debt to Equity Ratio (DER) and Price to Book Value (PBV) to Stock Return on Telecommunications Sector Sub Listed in Indonesia Stock Exchange

  • The analysis showed that the ROE does not have a significant effect on stock returns, DER has no significant effect on stock returns, while PBV positive and significant effect Stock Return on Telecommunications Sector Sub Listed in Indonesia Stock Exchange

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Summary

Introduction

The development of increasingly stringent business world in Indonesia will create an increasingly sharp competition between companies. The companies in the industry in Indonesia is a land for investors to invest capital to be invested in various forms of securities. It is not wrong for the company's various aspects and types become part of the capital market. Capital market in Indonesia has a lot of sectors one of which is infrastructure, utilities and transportation are companies which development is very fast and good. The amount of funds expended in the construction of infrastructure, utility and transportation to be an indicator that a country is very dedicated in providing the best facilities for its residents. Infrastructure, Utilities and Transport are growing rapidly and could push the country's revenue and support economic growth in Indonesia

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