IDEAS home Printed from https://ideas.repec.org/a/ids/ijgsbu/v9y2017i1p3-19.html
   My bibliography  Save this article

Factors determining stock returns in property, real estate and construction companies in Indonesia

Author

Listed:
  • Henny Medyawati
  • Muhamad Yunanto

Abstract

The main reason for investors or potential investors to invest in stocks is to derive maximum returns at minimum risk. One of the many factors determining stock returns from a company's shares consists of the company's financial ratios. The better the level of financial performance of the company, greater is the expectation of increase in its stock prices, and larger the benefit (return) from its shares to investors. The purpose of this study is to assess the impact of four factors, namely price-to-book value (PBV), the current ratio, debt-to-equity ratio (DER) and total assets turnover (TATO) on the level of stock returns in property, real estate and building construction firms listed in the Indonesian Stock Exchange for the period 2011-2014. The sample used in this study consisted of 18 companies, selected through the purposive sampling method. Regression analysis of panel data is the analytical tool used. The results have shown that TATO, DER and PBV influence the stock returns significantly.

Suggested Citation

  • Henny Medyawati & Muhamad Yunanto, 2017. "Factors determining stock returns in property, real estate and construction companies in Indonesia," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 9(1), pages 3-19.
    • Handle: RePEc:ids:ijgsbu:v:9:y:2017:i:1:p:3-19
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=84707
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijgsbu:v:9:y:2017:i:1:p:3-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=37 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.