ANALYSIS THE INFLUENCE OF FINANCIAL RATIO TOWARD STOCK RETURN IN MANUFACTURE INDUSTRY ON INDONESIA STOCK EXCHANGE 2014-2017

Abstract

Indonesia manufacture industry is one the most popular sector in capital market Indonesia. Indonesia Stock Exchange also has attraction for investors. This research was conducted to examine empirically the influence of financial ratio (liquidity, activity, leverage, profitability, and market value ratio) toward stock return in manufacture industry. This research used an independent variable of financial ratio which are current ratio, total asset turnover, debt to equity ratio, return on assets, return on equity, net profit margin, earnings per share, and price to earnings ratio. The dependent variable is stock return. The sample of this research used purposive sampling method, there were 77 manufacture companies listed in Indonesia Stock Exchange. This research used multiple analysis linear regression to analyze the data. The result of this research can be concluded that debt to equity ratio, return on assets, and price to earnings ratio have significant influence on stock return partially. Meanwhile, Independent variables have significant influence on stock return simultaneously.