THE RELATIONSHIP BETWEEN SELECTED KEY FINANCIAL RATIOS AND STOCK RETURN OF PUBLIC LISTED COMPANIES IN INDONESIA STOCK EXCHANGE UNDER PROPERTY, REAL ESTATE, AND BUILDING CONSTRUCTION SUBSECTOR

• Main Author: Wendy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47494
• Institution: Institut Teknologi Bandung

Gross Domestic Product (GDP) is one of critical indicator to measure a country’s economic growth, which reflect the total amount of product and final services of whole economic unit in a country. One of the critical components from GDP is consumption in forms of goods and services. In terms of economic growth, distribution access of goods and services is need to be improved. Distribution is strongly related with mode of transportation and infrastructure, which become one of the priority program in the presidential era of Mr. Joko Widodo, especially when we are seeing the fact that Republic of Indonesia is acknowledged as the 14th world’s largest country in terms of land area and also the 4th world’s most populous country in the world with more than 261 million people. This research is focusing on analyzing the relationship between selected key financial ratios, which are (Return on Asset (ROA), Return on Equity (ROE), Debt to Equity Ratio (DER), and Price to Book Value (PBV)) toward Stock Return of public listed companies in IDX under property, real estate, and building construction subsector, during 2014 – 2017 period. All the data are analyzed using SPSS program with multiple regression analysis method. In order to complete the analysis, assumption tests, coefficient of determination test, and hypothesis tests are also being performed in this research. This result of this research shows that Return on Asset (ROA), Return on Equity (ROE), and Price to Book Value (PBV) do not have a significant relationship on Stock Return, while Debt to Equity Ratio (DER) has significant relationship on Stock Return. All the independent variables simultaneously influence Stock Return, whereby Debt to Equity Ratio (DER) has the strongest positive relationship, and the rest consecutively are Return on Asset (ROA) which has positive relationship, Return on Equity (ROE), and Price to Book Value (PBV) whereby both has negative relationship.