The Influence of Profitability and Solvency on Company Stock Returns in the  Banking Sub-Sector Included in the LQ-45 Index

Elza Sherina; Titing Suharti; Diah Yudhawati

Elza Sherina Universitas Ibn Khaldun Bogor
Titing Suharti Universitas Ibn Khaldun Bogor
Diah Yudhawati Universitas Ibn Khaldun Bogor

Keywords: Return On Equity, Debt To Equity Ratio, Stock Returns

Abstract

and simultaneously in banking sub-sector companies that are included in the LQ 45 Index on the
Indonesia Stock Exchange (IDX) period 2016-2022. The independent variables in this study are
profitability ratios using Return On Equity (ROE) and solvency ratios using Debt To Equity Ratio (DER).
While the dependent variable used is Stock Return. The sampling method used a purposive sampling
method with a total sample consisting of 5 banking sub-sector companies with a research period of 7
years. In order to obtain 35 sample data. The data analysis method in this study used panel data regression
analysis, classical assumption test, multiple linear regression analysis, analysis of the coefficient of
determination, and hypothesis testing with the t test and f test. The research results show that partially the
ROE variable has a positive and significant effect on stock returns, while the DER variable has no
significant effect on stock returns. Simultaneously the ROE and DER variables have a significant effect
on stock returns.