The Effect of Debt to Equity Ratio, Return on Asset, and Price Earning Ratio on Stock Returns in Cigarette Sub-Sector Manufacturing Companies Listed on The IDX For the Period 2012-2022

Authors

  • Intan Ainur Rohmah Universitas Islam Malang
  • Sri Nuringwahyu Universitas Islam Malang
  • Eny Widayawati Universitas Islam Malang

DOI:

https://doi.org/10.33474/percipience.v3i2.22275

Keywords:

DER, ROA, PER, Stock Return

Abstract

This study aims to analyze the effect of Debt to Equity Ratio (DER), Return On Asset (ROA), and Price Earning Ratio (PER) on stock returns, both partially and simultaneously. The research method used is quantitative with purposive sampling technique on 44 samples, analyzed using multiple linear regression with SPSS 23 software. The results showed that DER (X1) had no significant effect on stock returns (t value < t table (-0.983 > 1.684) and sig value. > 0.05 (0.555 > 0.05)), which indicates that investors focus more on other factors such as earnings stability, dividend policy, and general financial performance rather than the company's debt structure. ROA (X2) has a positive and significant effect on stock returns (t value > t table (2.540 > 1.684) and sig value. < 0.05 (0.015 < 0.05)), reflecting the operational efficiency and the company's ability to generate profits from its assets. PER has a positive and significant effect on stock returns (t value> t table (2.095> 1.684) and sig value. < 0.05 (0.043 < 0.05)), reflecting positive market expectations of future earnings growth. Simultaneously, DER, ROA, and PER have a significant effect on stock returns with the test value of F count> F table (2,840> 2,839) and sig value. <0.05 (0.050 <0.05), with a contribution of 11,4% to the dependent variable.

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Published

2024-04-20

How to Cite

Rohmah, I. A., Nuringwahyu, S., & Widayawati, E. (2024). The Effect of Debt to Equity Ratio, Return on Asset, and Price Earning Ratio on Stock Returns in Cigarette Sub-Sector Manufacturing Companies Listed on The IDX For the Period 2012-2022. PERCIPIENCE International Journal of Social, Administration, & Entrepreneurship, 3(2), 92–103. https://doi.org/10.33474/percipience.v3i2.22275

Issue

Vol. 3 No. 2 (2024): PERCIPIENCE

Section

Articles

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Copyright (c) 2024 Intan Ainur Rohmah, Sri Nuringwahyu, Eny Widayawati

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