Business, Management and Accounting
3 years ago

Traditional financial ratios fail to predict stock returns, new tool needed.

PENGARUH RETURN ON EQUITY (ROE), EARNING PER SHARE (EPS), ECONOMIC VALUE ADDED (EVA) DAN MARKET VALUE ADDED (MVA) TERHADAP RETURN SAHAM
Ela Widasari, Hanifah Hanifah

Paper Summary

The goal of the study was to see how different financial ratios like ROE, EPS, EVA, and MVA affect stock returns. The researchers looked at data from manufacturing companies in Indonesia from 2011 to 2015. They found that only EPS had a significant impact on stock returns, while ROE, EVA, and MVA did not. This means that not all financial ratios have a direct influence on how well a company's stock performs.