THE EFFECT OF RETURN ON ASSETS AND RETURN ON EQUITY TOWARD CHANGES IN THE PRICE OF TRANSPORTATION COMPANIES
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Date
2020
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International Journal of Psychosocial Rehabilitation, Vol.24, Issue 02
Abstract
This research purposes to examine the Return On Assets (ROA) effect’s and Return On Equity (ROE) on
changes in share prices listed on the ISX at the 2015-2018 period. The method used in this research’s explanatory
research. The data used is data of secondary. The population at this research’re all sub-sector of transportation
companies listed at the ISX at the period of 2015-2018. Sampling using a purposive method, so the number of samples
obtained by 11 corporates with a total observation of 44 data. The analysis of data method uses analysis of panel
data and data testing is done using the Eviews 8 program. The results showed that ROA partially had no effect on
changes in stock prices. ROE affects the changes in stock prices. With a determination coefficient’s (R2) of 0.217053
which denotes that the variability of the dependent variable that is changes in stock prices can be explained by the
variables of independent specificaly Return On Assets and Return On Equity in this study amounted to 21.7053%, and
the remaining 78.2947% is explained by others than the research model.
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Keywords
Return On Assets, Return On Equity, Changes in Stock Prices