The Effects of Financial Performance on Stock Returns: Evidence of Machine and Heavy Equipment Companies in Indonesia

Razak, Azila Abdul; Nurfitriana, Febrian Vingky; Wana, Desty; Ramli, Ramli; Umar, I.A.; Endri, Endri

doi:10.5430/rwe.v11n6p131

Cited by 21 publications

(14 citation statements)

References 12 publications

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“…Stock market volatility tends to increase drastically if there are important events that have a broad economic and financial impact, such as the 1997/98 Asian economic crisis, and most recently the health crisis due to COVID-19. Although the causes of stock market volatility are not well understood, higher stock market volatility can lead to pessimism about future economic developments (Razak et al, 2020). Schwert (1989) states that stock market volatility indicates that future cash flows and discount rates are uncertain.…”

Section: Literature Reviewmentioning

confidence: 99%

Stock price volatility during the COVID-19 pandemic: The GARCH model

Endri

Aipama

Razak

et al. 2021

Investment Management and Financial Innovations

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This study examined the response of stock prices on the Indonesia Stock Exchange (IDX) to COVID-19 using an event study approach and the GARCH model. The research sample is the closing price of the Composite Stock Price Index (JCI) and companies that are members of LQ-45 in the 40-day period before the COVID-19 incident, 1 day during the COVID-19 incident (March 2, 2020) and 10 days after, January 6, 2020 – March 16, 2020. Empirical findings prove that abnormal returns react negatively to COVID-19, JCI volatility fluctuates widely during the COVID-19 event, and the GARCH(1,2) model can be used to assess volatility and predict stock abnormal returns in IDX in market conditions infected with COVID-19. The practical implication of the study’s findings for investors is that the COVID-19 event caused stock price volatility, which affects abnormal returns. Therefore, to face the conditions of uncertainty and increased volatility in the future, several lines of risk management are needed in managing a stock portfolio. In addition, it also opens up opportunities for speculators to profit in an inefficient market environment. This study is based on the empirical literature currently being developed to investigate the phenomenon of stock price volatility behavior during COVID-19 on the IDX. The GARCH model used proves that during the COVID-19 pandemic, stock price volatility increases and leads to a decrease in abnormal returns. The empirical findings also validate the efficient market hypothesis theory related to the study of events and the theory of financial behavior related to uncertainty.

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Section: Literature Reviewmentioning

confidence: 99%

Stock price volatility during the COVID-19 pandemic: The GARCH model

Endri

Aipama

Razak

et al. 2021

Investment Management and Financial Innovations

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“…Total aset turnover pada dasarnya menunjukkan kemampuan perusahaan untuk mendapatkan pendapatan dari total aset yang dimiliki. Namun, hasil analisis menunjukkan bahwa total aset turnover tidak memiliki pengaruh signifikan terhadap harga saham sehingga hasil penelitian mendukung Razak et al, (2020). Terdapat perbedaan persepsi diantara investor dalam memilih metode penilaian kelayakan investasi.…”

Section: Tabel 7 Hasil Uji Regresi Linier Bergandaunclassified

Kinerja Keuangan Perusahaan Pada Harga Saham Perusahaan Food and Beverage di Indonesia

Ainul

Wulandari

2022

E-Jurnal Akuntansi

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The background of the research is the importance of the company's financial performance in making investment decisions for potential investors. The purpose of this study was to determine and analyze the effect of the Current Ratio, Total Asset Turnover, Debt to Equity Ratio, Return on Equit, and Price Earnings Ratio on the Stock Price of Food and Beverage Companies for the 2015-2019 period. The sample in this study used a purposive sampling technique and the final sample was 54 food and beverage companies during the sample period. The analytical tool used is multiple linear regression. The results showed that the Current Ratio, Return on Equity and Price Earnings Ratio had an effect on stock prices. Meanwhile, Total Asset Turnover and Debt to Equity Ratio have no effect on stock prices. Keywords: Current Ratio; Total Asset Turnover; Debt to Equity Ratio; Return on Equity; Price Earnings Ratio; Stock Price.

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“…The research hypothesis is in line with the findings of Herdiyana et al ( 2021) which state that the ROA ratio has a positive effect on stock prices, then the formulation of the research hypothesis is as follows: H1: ROA has a positive effect on stock prices. Razak et al (2020) state that for companies that use debt funds, if the profits obtained are greater than the fixed costs, then the profits of the owners of the company will increase. Based on the statement above, the use of debt will pose risks, but it can also be used to increase shareholder returns as seen from changes in share prices.…”

Section: The Effect Of Return On Assets (Roa) On Stock Pricesmentioning

confidence: 99%

Biodiesel and Stock Prices: Evidence of Oil Palm Plantation Companies in Indonesia

Endria¹,

Riyani²,

Mardiah³

2022

IJSSHR

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This study examines the effect of the biodiesel program factor 20, return on assets (ROA), and debt to equity ratio (DER) on the stock prices of companies in the oil palm plantation sub-sector for the period 2016-2021. The selected research sample is seven oil palm plantation sector companies listed on the Stock Exchange Indonesian Effect (IDX) Panel data regression method was applied to estimate and analyze the research model. The results showed that return on assets (ROA), and debt to equity ratio (DER) have a positive effect but no significance on stock price, while the program of biodiesel 20 does not affect the stock price.

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The Effects of Financial Performance on Stock Returns: Evidence of Machine and Heavy Equipment Companies in Indonesia

Cited by 21 publications

References 12 publications

Stock price volatility during the COVID-19 pandemic: The GARCH model

Stock price volatility during the COVID-19 pandemic: The GARCH model

Kinerja Keuangan Perusahaan Pada Harga Saham Perusahaan Food and Beverage di Indonesia

Biodiesel and Stock Prices: Evidence of Oil Palm Plantation Companies in Indonesia

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