Business, Management and Accounting
3 years ago

Positive ROE boosts stock returns, while high DER has no impact.

1 view
Indonesian Financial Review
Effect of Return on Equity and Debt to Equity Ratio to Stock Return
Iman Lubis, Farida Nur Alfiyah

Paper Summary

The study looked at how Return on Equity (ROE) and Debt to Equity Ratio (DER) affect Stock Return. They used financial reports from 2009 to 2018 from the Indonesia Stock Exchange. The results showed that ROE has a positive and significant impact on Stock Return, while DER has a negative and insignificant impact. When looking at both factors together, they found no significant influence on Stock Return.

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