The Effect Of Market Ratio And Profitability Ratio On Stock Return In The Hotel Industry On The Indonesia Stock Exchange Periode 2017-2021

Abstract

An investment is a commitment of money or other resources made now for future gains. The objective of investors' investment activities in the capital market is to obtain optimal returns. The purpose of this study was to determine the effect of market ratios and profit ratios on the hotel industry's stock returns on the Indonesia Stock Exchange. A sample of 5 hotels was used in this study. The analysis technique used in this study is multiple linear regression analysis. The results showed that the market ratio (X1) and profit ratio (X2) simultaneously affect stock returns (Y). In addition, several market ratios have an impact on stock returns, but the profitability ratios have no effect on stock returns in the Indonesian stock exchange for the hospitality sector. It is suggested that more basic factors such as market ratio and profit ratio should be considered, and the trading volume of the issuing company should be considered to get high returns. The hotel industry listed on the IDX is expected to be able to operate and manage the company's business more efficiently to attract investors to invest their funds