Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)

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Financial Ratio and Stock Returns in Indonesia Equity Markets: A Signaling Theory Approach

Authors
Rini Agustin1, Nurcahyono Nurcahyono1, *, Andwiani Sinarasri1, Fatmasari Sukesti1
1Department of Accounting, Universitas Muhammadiyah Semarang, Semarang, Indonesia
*Corresponding author. Email: nurcahyo@unimus.ac.id
Corresponding Author
Nurcahyono Nurcahyono
Available Online 22 May 2023.
DOI
10.2991/978-94-6463-154-8_25How to use a DOI?
Keywords
Financial ratio; stock market return; signaling theory
Abstract

Stock prices that have fluctuated have caused the stock return that investors will receive to be negligible during the Covid 19 pandemic. The decrease in stock prices can result from stock revenues later, which will be given to investors, and whether the financial ratios and mechanisms of good corporate governance can increase or result in the stock revenues given to investors. This study empirically examines the effect of return on assets, revenue on equity, net profit margin, current ratio, debt to equity ratio, debt to total asset ratio, earning per share and good corporate governance mechanisms on stock revenues moderated by an independent commissioner. A quantitative study was used 28 industries listed on index LQ45 that was stable during 2017–2021 were used as the population in this study. Furthermore, data analysis was carried out with multiple linear regression using SPSS. The results of this study found that the variables revenue on assets, net profit margin, current ratio, debt to total asset ratio, earning per share, and audit committee can have a negative effect on stock revenues. revenue equity, debt to equity ratio can have a positive result on stock revenues, and independent commissioners can moderate the revenue equity and current ratio.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
22 May 2023
ISBN
978-94-6463-154-8
ISSN
2352-5428
DOI
10.2991/978-94-6463-154-8_25How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Rini Agustin
AU  - Nurcahyono Nurcahyono
AU  - Andwiani Sinarasri
AU  - Fatmasari Sukesti
PY  - 2023
DA  - 2023/05/22
TI  - Financial Ratio and Stock Returns in Indonesia Equity Markets: A Signaling Theory Approach
BT  - Proceedings of the International Conference on Business, Accounting, Banking, and Economics (ICBABE 2022)
PB  - Atlantis Press
SP  - 277
EP  - 292
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-154-8_25
DO  - 10.2991/978-94-6463-154-8_25
ID  - Agustin2023
ER  -