Abstract
The objective of this study is to examine the effect of book to market ratio, expected profitability, and expected investment on stock return. This study
uses data of listed non-finance sector companies in LQ45 Indonesian Stock Exchange for the period 2008-2017. Expected profitability associated with ROA value and expected investment associated with growth of assets. This analysis method used in this study is regression model with panel data. This study found that book to market ratio has a significant positive effect on stock return, Return on Assets (ROA), as a proxy of expected profitability, also has a significant effect on stock return. Unlike the other variables, growth of assets, as a proxy of expected investment, has a not significant adverse effect on stock return.
uses data of listed non-finance sector companies in LQ45 Indonesian Stock Exchange for the period 2008-2017. Expected profitability associated with ROA value and expected investment associated with growth of assets. This analysis method used in this study is regression model with panel data. This study found that book to market ratio has a significant positive effect on stock return, Return on Assets (ROA), as a proxy of expected profitability, also has a significant effect on stock return. Unlike the other variables, growth of assets, as a proxy of expected investment, has a not significant adverse effect on stock return.
| Original language | English |
|---|---|
| Journal | SSRG International Journal of Economics and Management Studies ( IJEMS ) |
| Volume | 7 |
| Issue number | 6 |
| Publication status | Published - Jun 2020 |