FINANCIAL PERFORMANCE EFFECTS ON THE STOCK RETURNS OF INDONESIAN FOOD AND BEVERAGE COMPANIES
The food and beverage industry are one of Indonesia's most appealing industries, as its contribution to the country's GDP has been steadily increasing for the past six years. The food and beverage industry are the major sub-sector of the consumer goods industry. The author chose this sub-s...
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| Main Author: | |
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/63185 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The food and beverage industry are one of Indonesia's most appealing industries, as its contribution to the country's GDP has been steadily increasing for the past six years. The food and beverage industry are the major sub-sector of the consumer goods industry. The author chose this sub-sector to focus on because the food and beverage industry is expected to grow rapidly as Indonesia's middle-income population grows, as well as the rapid development of infrastructure, which is critical to the industry's growth. The purpose of this research is to examine and analyze the effect of financial performance, namely profitability, liquidity, financial leverage, efficiency, and valuation ratio on stock return of food and beverage companies. Based on the purposive sampling method used in this research, the data from 12 food and beverage companies that were listed on Indonesia Stock Exchange in 2020 were collected. Using the panel data regression common effect model, the following results are obtained, profitability (ROE), leverage (DER), and valuation ratio (P/E Ratio), have a significant impact on stock returns of food and beverage companies. Since there are still many variations that are yet to be explained by the model, this study could be enhanced in the future by adding macroeconomic variables. |
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