THE INFLUENCE OF FINANCIAL RATIOS TOWARDS STOCK RETURNS IN VARIOUS INDUSTRIES SECTOR

Abstract

The focus of this analysis is to examine whether the present ratio of financial ratios with liquidity ratio used current ratio, for solvency ratio used the debt to equity ratio, for profitability ratio used the return on equity, and for activity ratio used the total asset turnover of assets have some effect on stock returns. This thesis includes 31 companies in various industry sectors listed on the Indonesian Stock Exchange as a target selected by a purposeful sampling process between 2017 and 2019. The methods that are used in this research are descriptive analysis, multiple linear regression analysis, hypothesis testing and also the classic assumption test of the model feasibility test. The conclusion and results of this research is that debt to equity ratio has an outcome that the stock return is affected simultaneously by debt to equity ratio meanwhile the other ratios namely current ratio, return on equity and also total asset turnover simultaneously does not have any effect.