Stock Return: Debt to Equity Ratio (DER) and Return on Equity (ROE) in Real Estate and Property Industrial Companies

Rina Malahayati, Muhammad Tahir, Muridha Hasan

Abstract


This study aims to determine the effect of Debt to Equity Ratio (DER) and Return on Equity Ratio (ROE) on stock returns. This research includes associative research. The population of this study are real estate and property industry companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2018 period. Determination of the sample using purposive sampling method and there are 26 companies that meet the criteria as research samples. The results showed that the Debt to Equity Ratio (DER) had a negative but not significant effect on stock returns and Return on Equity (ROE) had a positive effect on stock returns.


Keywords


stock return; debt to equity ratio (DER); return on equity (ROE)

Full Text:

PDF

References


Abdullah, Mohammad Nayeem; Kamruddin Parvez; Tarana Karim; Rahat Bari Toohen. 2015. The Impact of Financial Leverage and Market Size in Stock Returns on the Dhaka Stock Exchange: Evidence from selected stocks in the manufacturing sector. International Journal of Economics, Finance and Management Sciences. Vol. 3, No. 1, Hal. 10-15.

Acheampong, Prince; Evans Agalega; Albert Kwabena Shibu. 2014. The Effect of Financial Leverage and Market Size on Stock Returns on Rhe Ghana Stock Exchange: Evidence on Selected Stocks in the Manufacturing Sector. International Journal of Financial Research. Vo. 5, No. 1, P. 125-134.

Afiezan, A., et.al. (2020). The Effect of Free Cash Flow, Company Size, Profitability and Liquidity on Debt Policy for Manufacturing Companies Listed on IDX in 2016-2019 Periods. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 3 (4): 4005-4018.

Alozzi, Nurah Musa; Ghassan S. Obiedat. 2016. The Relationship Between the Stock Return and Financial Indicators (Profitability, Leverage): An Empirical Study on Manufacturing Companies Listed in Amman Stock Exchange. Journal of Social Sciences. Vol. 15, No.3, Hal. 408-424.

Ang, R. 2013. Buku Pintar Pasar Modal Indonesia. Jakarta: Media Staff.

Brigham, Eugene F & Hoston, Joel F. 2015. Fundamental of Financial Management. Ed 14. Australia: Cengage Learning.

Devi, Ni Nyoman Sri Jayanti Perwani dan Artini, Luh Gede Sri., 2019. Pengaruh ROE, DER, PER, Dan Nilai Tukar terhadap Return Saham. E-Jurnal Manajemen. Vol. 8, No. 7.

Ibrahim, Idris, Hussaini Bala. 2017. Firms Specific Characteristics and Stock Market Returns (Evidence From Listed Food and Beverages Firms In Nigeria. International Journal of Information, Business and Management. Vol. 2, No. 1, Hal. 257-276.

Jogiyanto. 2015. Teori Portofolio dan Analisis Investasi: Edisi ke-10. Yogyakarta: BPFE.

Kasmir. 2016. Analisis Laporan Keuangan. Jakarta: Raja Grafindo Persada.

Katharina, N., et.al. (2021). Influence Capital Structure, Liquidity, Size the Company, Debt Policy and Profitability towards Corporate Value on Property Company, Real Estate and Building Construction Listed on the Stock Exchange Indonesia Period 2016-2019. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 4 (2): 2241-2256.

Mailani, Cipta, Suci. 2017. Pengaruh Current Ratio dan Debt to Equity Ratio serta Return on Asset Terhadap Return Saham pada Perusahaan Indeks LQ-45 YANG Terdaftar di Bursa Efek Indonesia. Jurnal Jurusan Manajemen. Vol. 8, No. 2, P. 97-105.

Nesa, Anisa. 2015. Analisis Faktor-Faktor yang Mempengaruhi Return Saham (Studi Kasus pada Perusahaan Sub Sektor Automotif dan Komponen yang terdaftar di Bursa Efek Indonesia Periode 2010-2014. Jurnal Fakultas Ekonomi dan Bisnis Perbanas Institute. Vol. 1, No. 1, P. 72-86.

Saleh, A., Dalimunthe, A.H., and Lubis, F.H. (2019). Development of Banking CSR Model for Community Empowerment Slum Area in Medan City. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 2 (3): 39-50.

Tandelilin. 2014. Teori Portofolio dan Analisis Investasi: Edisi 9. Yogyakarta: BPFE.




DOI: https://doi.org/10.33258/birci.v5i1.4495

Article Metrics

Abstract view : 119 times
PDF - 55 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.