The Effect of Price Earning Ratio, Return O Equity, Debt to Equity Ratio, Firm Size, and Dividend Payout Ratio to the Stock Returns on Banks Listed in LQ45 Index 2015-2020

Abstract

The capital market in Indonesia is currently experiencing very rapid development from year to year, as evidenced by the increasing number of public companies every year. Banking is one of the sub-sectors included in the LQ45 index with its average share having the highest market capitalization among other sub-sectors. The development of the capital market in Indonesia, including the banking sub-sector is inseparable from the supporting factors are internal factors as seen from the company's financial ratios. This study aims to determine the influence of price earning ratio, return on equity, debt to equity ratio, firm size, and dividend payout ratio on stock returns in banks listed on the LQ45 index for the period 2015-2020. The data collection method used in this study is the documentation method. The data used is secondary data, the determination of the sample in this study was carried out by purposive sampling method. The data in this study was processed using SPSS Application. The analysis tools used are, Descriptive Statistical Analysis, Classic Assumption Test, Multiple Linear Regression, T Test, F Test, and Determination Coefficient. The results of this study show that the price earning ratio, return on equity, debt to equity ratio, firm size, and dividend payout ratio affect stock returns simultaneously. Partially, the price earning ratio, return on equity, and debt to equity ratio affect stock returns, meanwhile firm size and dividend payout ratio have no effect on stock returns

The Effect of Company Performance on Stock Returns in the LQ45 Stock Cluster in 2020-2022

“…The odds ratio value of the Price Earnings Ratio variable is e 0.2042 = 1.2265, meaning that the higher of the Price Earnings Ratio value, the possibility of a company's stock becoming the leading stock will be 1.2265 times greater, assuming other variables are constant. Research that supports this statement is research from [11], [36], and [37] which states that the Price Earnings Ratio has a positive and significant influence on stock returns.…”

Determinan Return Saham: Kajian Tentang Peran Analisis Fundamental

“…Berbagai literatur terdahulu telah memberikan kontribusinya dalam kaitannya mengungkapkan determinan return saham. Misalnya, DPR memiliki dampak positif (Li, 2016;Hertina & Saudi, 2019), tetapi tidak signifikan dalam penelitian lain (Hendrianto, 2022;Kartika et al, 2022;Fahira & Haryadi, 2022). Dividen meningkatkan return saham menurut Ali dan Hegazy (2022), tetapi Wibawa (2013) menemukan ketidakmampuan DPS sebagai prediktor return saham.…”

“…Kim (2021) menemukan bahwa ketika perusahaan yang dikenal memberikan dividen lebih tinggi memiliki reputasi dividen yang solid, dan mereka yang membangun reputasi tersebut cenderung mencapai return yang lebih tinggi di masa depan (Charitou et al, 2011). Hasil ini kontradiktif dengan temuan studi Kartika et al (2022), Hendrianto (2022, serta Fahira & Haryadi (2022) yang menyatakan bahwa DPR memprediksikan return saham.…”