The Influence of Profitability on Stock Return with Inflation as a Moderating Variable (Empirical Study on Automotive Companies and Components Listed in Indonesia Stock Exchange 2013–2017)

Abstract

This study aims to analyse the effect of profitability on stock returns with inflation as a moderating variable. The variables tested in this research are profitability proxy for Return on Assets (ROA), Return on Equity (ROE) and Net Profit Margin (NPM), inflation and stock returns. The sample of this research uses 12 automotive companies and automotive components that consistently published financial statements in the Indonesia Stock Exchange period 2013-2017. Samples were taken by purposive sampling method which is a method of samples based on certain criteria. These variables analysed using panel data regression. In this study, testing hypotheses used the t test, F test and regression used Moderated Regression Analysis (MRA). Panel data regression results showed Adjusted Rsquared of 0.153836, which means that the magnitude of the influence of the independent variable moderated by inflation on the dependent variable that can be explained by this equation model is 15.38%. While the remaining 84.62% is influenced by other factors not taken into account in this regression model. The conclusions of this research show that ROA has a significant positive effect on stock returns, ROE has a negative effect on stock returns, NPM has no effect on stock returns, ROA moderated by inflation has a negative effect on stock returns, ROE moderated by inflation has a significant positive effect on stock returns, and NPM moderated by inflation does not affect stock returns.

The Effect of Profitability and Solvency on Stock Returns Moderated by Macroeconomic

“…From the company's side, when inflation occurs, operating costs will increase and will be followed by a decrease in company profits. The decline in company profits will certainly result in reduced dividends distributed to investors (Sugito et al, 2018). This is not in line with research conducted by (Anggraini & Wijayanto, 2021).…”

Dampak Makro Ekonomi Terhadap Return Saham dengan Profitabilitas Sebagai Intervening dan Inflasi Sebagai Moderasi

“…Dengan demikian hipotesis yang menyatakan bahwa profitabilitas berpengaruh positif signifikan terhadap return saham terbukti. Hasil penelitian ini sejalan dengan penelitian terdahulu yang dilkaukan oleh Sugito et al (2019) serta Almira & Wiagustini (2020) yang menunjukkan bahwa profitabilitas berpengaruh signifikan positif terhadap return saham. Penelitian keduanya menyimpulkan bahwa semakin tinggi profitabilitas yang diproksikan dengan rasio ROE, semakin tinggi pula return saham yang diterima oleh investor.…”

Analisis Minat Mahasiswa Akuntansi Syariah Untuk Berkarir Menjadi Akuntan Publik

“…Kegiatan utama dari profesi akuntan publik yaitu memberikan opini atau pendapat terhadap laporan keuangan yang dibuat pihak manajemen. Maka profesi akuntan dituntut memiliki keahlian dalam bidang akuntansi dan mampu bertindak profesional sesuai etika profesionalisme audit (Nursanita, 2020).…”