PENGARUH KINERJA KEUANGAN TERHADAP RETURN SAHAM PADA PERUSAHAAN FOOD AND BEVERAGE

Abstract

This research aimed to examine the effect of financial performance on stock return on food and beverage companies which were listed on Indonesia Stock Exchange during 2014-2018. The population was 24 companies which were listed on Indonesia Stock Exchange. Moreover. The data collection technique used purposive sampling. In line with, there were 11 companies as simple. Furthermore, the data were quantitative. Additionally, the data analiysis technique used multiple linear regression. The research result concluded profitability had positive and significant effect on stock return. It meant, the higher the ROA, the better the company’s performance. As consequance, many investors would be more interested in investing their money. On the other hand, solvability had insignificant effect on stock return. This happened as more DER showed higher risk of company. Consequently, the investors would avoid company which had higher DER. In contrast, market had positive and significant effect on stock return. This meant, with higher its EPS, the management would succeed in earning some profits. As the result, stock price and share return of company would be increased also.
Keywords: financial performance, return on asset, debt to equity ratio, earning per share, stock return