Why Stock Returns on Property and Real Estate Companies on BEI?

Abstract

This study aims to analyze the effect of return on equity, price earning ratio and net profit margin on stock returns. The dependent variable in this study is stock return. While the independent variables are return on equity, price earning ratio and net profit margin. The population in this study are property and real estate sector companies listed on the Indonesia Stock Exchange during 2015-2019. The samples obtained were 28 companies using purposive sampling method. The analytical tool used is panel data regression analysis with the help of the software program Eviews 10. Using the fixed effects model, the results show that the return on equity and price earning ratio variables have a significant positive effect on stock returns. While the net profit margin has no effect on stock returns. These results indicate that the stock return of the property and real estate sector companies will change, which is influenced by the return on equity variable and the price earning ratio variable. The implication of this research is that the company is expected to increase revenue by managing or utilizing the capital owned by the company, increasing total sales and minimizing expenses so that the company gets an increasing stock return.

Can Companies Distributethe Dividends in 2020? Study Case on Theindonesia Stock Exchange

“…Therefore, high or low liquidity does not affect the dividend distribution dividends. The result of this study is in accordance with the research conducted by Puspita [13] and Rokhayati et al [17] which state that liquidity is not a factor that causes dividend distribution. However, the result of this study contradicts the research conducted by Lismana [16] which states that liquidity is a factor that causes dividend distribution.…”

“…On the contrary, Puspita [13] states that although the company's cash is sufficient to pay dividends, it is decided that the company's cash adequacy is used for the company's operational interests or investments so that the dividends to be distributed decrease. It is supported by Rokhayati et al [17], which explain that high or low liquidity does not guarantee that the company will distribute dividends so that liquidity is only a measurement tool. Therefore, the second hypothesis is proposed as:…”

The Role of Financial Distress on Company Life Cycle and Stock Return

“…Stock returns are the profit investors earn from previous investment activities (Rokhayati et al, 2021). It occurs when the stock price rises, allowing investors to benefit from the rise in stock prices; conversely, investors will suffer losses if the stock price falls.…”