| dc.description.abstract | The Indonesian capital market has experienced significant growth over the
past decade, marked by an increase in the number of investors, market
capitalization, and issuers. Stocks, as the dominant instrument on the Indonesia
Stock Exchange, make stock returns the main indicator in assessing investment
performance. Amid this growth, the property sector exhibits unique characteristics:
it is strategic but highly sensitive to economic dynamics. Sharp fluctuations in the
returns of this sector, especially during the COVID-19 pandemic crisis, reflect the
importance of examining the influence of fundamental factors on its performance.
This study aims to analyze the effect of financial ratio factors on stock
returns in property companies listed on the Indonesia Stock Exchange (IDX) during
the period 2010-2024. The analysis method used is panel data regression using the
Common Effect Model (CEM) approach. Partially, ROE has a negative effect on
stock returns, indicating that company profitability is not a key indicator in the
property sector. EPS and PER have a positive and significant effect on stock returns.
DER has a negative but insignificant effect, reflecting that property sector investors
are more focused on liquidity and cash flow management than debt ratios. Firm
size has a negative and insignificant effect, indicating that large companies tend to
generate lower returns because they are considered to have more stable but limited
growth.
The simultaneous test results show that the combination of ROE, EPS, DER,
PER, and Firm Size has a significant effect on stock returns, with a coefficient of
determination (R2) of 11.76%, which means that most of the variation in stock
returns is explained by factors other than those in this study. These findings have
practical implications for investors to evaluate financial ratios comprehensively
and use them as a reference in investment decision-making. | en_US |
