scholarly journals The P/E Ratio And Profitability

2013 ◽  
Vol 12 (1) ◽  
pp. 67
Author(s):  
Wan-Ting (Alexandra) Wu
Keyword(s):  
Stock Returns ◽  
Return On Equity ◽  
Earnings Growth ◽  
Forward Price ◽  
Theoretical Predictions ◽  
Sale Growth ◽  
Excess Stock Returns

<p>This paper examines the relation between the forward price-to-earnings (P/E) ratio and profitability. Consistent with the theoretical predictions of Ohlson and Zhan (2006), this paper finds a U-shaped relation between the forward P/E ratio and return on equity (ROE). Besides, firms with high P/E ratios tend to have lower ROE in the subsequent years, and their ROE is very volatile and wide-distributed. Using the GSCORE from Mohanram (2005), this paper separates winners from losers among high P/E firms. Firms with high GSCORE yield higher earnings growth, sale growth, ROE, and excess stock returns in the following years.</p>

scholarly journals Analisis Pengaruh Beta Saham, Debt To Equity Rasio (DER) terhadap Return On Asset (ROA) Perusahaan di Bursa Efek Indonesia

2019 ◽  
Vol 28 (02) ◽  
pp. 198-212
Author(s):  
Muhammad Ikhsan ◽  
Eko Budi Santoso
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Net Income ◽  
Financial Leverage ◽  
Return On Equity ◽  
Market Index ◽  
Sample Data ◽  
Equity Ratio ◽  
Excess Stock Returns

Perhitungan rasio keuangan penting bagi perusahaan.. Investor dapat melihat kinerja perusahaan apakah perusahaan berkinerja baik dibandingkan dari rata-rata industri. Rasio adalah ukuran perbandingan antara pos dalam laporan keuangan dengan pos lainnya. Misalnya rasio profitabilitas yaitu Return on Asset makin tinggi ROA makin baik karena Net income makin tinngi. Demikian juga Debt to Equity ratio yaitu  berapa batasan berhutang yang ideal yaitu financial leverage berapa ukuran maksimal sehingga net income maksimal.Resiko sistematis atau Beta saham didapat dari slope hasil regresi antara ekses return saham dengan ekses pasar adalah ukuran resiko juga dalam berinvestasi saham . Resiko adalah hal yang menyimpang dari target yang kita inginkan atau sesuatu pencapaian yangberbeda dari hal atau sesuatu yang kita inginkan atau harapkan. Contoh Resiko berinvestasi adalah jika kita menderita kerugian atau kehilangan pokok yang kita tanankan. Resiko yang mempengaruhi saham di bursa yaitu bisa resikosistematik atau bisa juga resiko unsistematis atau resiko di dalam perusahaan misalnya manajemennya. Resiko sistematisjuga disebut resiko pasar yang menimpa semua saham seperti pengaruh dari luar yaitu inflasi, kurs mata uang atau kebijakan pemerintah.Penelitian ini akan membahas apakah ada pengaruh Debt to equity ratio dan beta saham/ resiko sistematis terhadap nilai ROA karena bagi perusahaan net income adalah penting juga bagi investor untuk membeli saham.Sampel datayang diambil penulis sebanyak 35 macam saham dengan cara mengambil secara acak saham-saham yang ada di Bursa efek Indonesia. Data sampel akan diolah dengan statistik menjadi informasi dalam menjawab permasalahan  dengan  Aplikasi SPSS edisi 19. Hasil penelitian ini yaitu secara bersama-sama variabel Debt to Equity ratio dengan Beta saham mempunyai pengaruh yang signifikan terhadap Return on Equity (ROA) perusahaan di Bursa Efek Indonesia Calculation of finance ratios is important for the company. Investors can view the performance of the company if the company performs well compared to the average industry. The ratio is a measure of the ratio between account in the financial statements with another accounts. For example profitability ratios Return on Assets( ROA) higher is better because Net income increasing. Likewise with Debt to Equity ratio, is how much restriction ideal loanlikethe ideal size of financial leverage to maximum net income. Beta is a systematic risk obtained from the slope of the regression results between excess stock returns with excess return of the capital market index. This is a measure of risk in stock investing. Risk is something that deviates from the target that we want or something less achievement from thing or something we want or expect. Examples of investment risk is if we suffer any loss of money  that we invest. Risks of invest stocks is a systematic risk or a unsystematis risk for examplelike a management in the company. Systematic risk is also called market risk hapend to all shares like outside influence,for example inflation, foreign exchange rates or government policy. This research will address the influence Debt to equity ratio and beta stocks / systematic risk to the value of Return of Asset (ROA) because for the company's net income is important for investors to decide buy shares. Sample data is retrieved author as many as 35 kinds of stocks by taking random stocks that exist in the Indonesian Stock Exchange. The sample data will be processed with statistical information in the answer problems with SPSS applications editions 19. Results of this research is jointly variable Debt to Equity ratio with Beta stocks have a significant influence on Return on Equity (ROA) companies in Indonesia Stock Exchange

scholarly journals Choosing Factors for the Vietnamese Stock Market

2021 ◽  
Vol 14 (3) ◽  
pp. 96
Author(s):  
Nina Ryan ◽  
Xinfeng Ruan ◽  
Jin E. Zhang ◽  
Jing A. Zhang
Keyword(s):  
Stock Returns ◽  
Factor Model ◽  
Five Factor Model ◽  
Explanatory Power ◽  
Factor Models ◽  
Marginal Contribution ◽  
Return On Equity ◽  
Factor Modeling ◽  
Three Factor ◽  
Better Than

In this paper, we test the applicability of different Fama–French (FF) factor models in Vietnam, we investigate the value factor redundancy and examine the choice of the profitability factor. Our empirical evidence shows that the FF five-factor model has more explanatory power than the FF three-factor model. The value factor remains important after the inclusion of profitability and investment factors. Operating profitability performs better than cash and return-on-equity (ROE) profitability as a proxy for the profitability factor in FF factor modeling. The value factor and operating profitability have the biggest marginal contribution to a maximum squared Sharpe ratio for the five-factor model factors, highlighting the value factor (HML) non-redundancy in describing stock returns in Vietnam.

scholarly journals Short-Term Exuberance and Long-Term Stability: A Simultaneous Optimization of Stock Return Predictions for Short and Long Horizons

Mathematics ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 620
Author(s):  
Ioannis Kyriakou ◽  
Parastoo Mousavi ◽  
Jens Perch Nielsen ◽  
Michael Scholz
Keyword(s):  
Stock Returns ◽  
Simultaneous Optimization ◽  
Investment Risk ◽  
Short Term ◽  
Fundamental Interest ◽  
Long Term Stability ◽  
Risk Appetite ◽  
Short And Long Term ◽  
Excess Stock Returns

The fundamental interest of investors in econometric modeling for excess stock returns usually focuses either on short- or long-term predictions to individually reduce the investment risk. In this paper, we present a new and simple model that contemporaneously accounts for short- and long-term predictions. By combining the different horizons, we exploit the lower long-term variance to further reduce the short-term variance, which is susceptible to speculative exuberance. As a consequence, the long-term pension-saver avoids an over-conservative portfolio with implied potential upside reductions given their optimal risk appetite. Different combinations of short and long horizons as well as definitions of excess returns, for example, concerning the traditional short-term interest rate but also the inflation, are easily accommodated in our model.

PENGARUH CURRENT RATIO, RETURN ON EQUITY DAN EARNING PER SHARE TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2010 – 2019

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Susi Lusiana
Keyword(s):  
Data Collection ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Ratios ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Return On Equity ◽  
Earnings Per Share

The study of this research is to determine the effect of returning shares in manufacturing companies. This study uses the financial ratios contained in the company's financial statements. The financial ratios used in this study are the current ratio, return on equity, and earnings per share to stock returns in manufacturing companies listed on the Indonesian stock exchange in 2010-2019. This type of research used in this research is quantitative and the analytical method used is purposive sampling using SPSS 21 as many 10 manufacturing companies in the food, beverage, textile, rubber goods (tires), fisheries, and agriculture sectors. Data collection techniques are used by retrieving data through the website www.idx.co.id. The results showed that Current Ratio (CR) has a positive and significant effect on Stock Returns, Return On Equity (ROE) has a positive and significant effect on Stock Returns, and Earning Per Share (EPS) has a negative and significant effect on Stock Return.

PENGARUH RETURN ON EQUITY (ROE), DEBT TO EQUITY RATIO (DER) DAN TOTAL ASSET TURNOVER (TATO) TERDAHAP RETURN SAHAM PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Siska Audina Bambang Siswanto
Keyword(s):  
Stock Returns ◽  
Secondary Data ◽  
Sampling Technique ◽  
Total Asset ◽  
Coefficient Of Determination ◽  
Manufacturing Companies ◽  
Return On Equity ◽  
Insignificant Effect ◽  
Asset Turnover ◽  
Equity Ratio

This study was conducted to examine the effect of Return on Equity, Debt to Equity Ratio and Total Asset Turnover on stock returns in manufacturing companies listed on the IDX for the 2014-2018 period. The population in this study were 143 manufacturing companies for the 2014-2018 period. The sampling method used was purposive sampling technique and the selected sample met the criteria of 40 companies so that the data used was 200. This study used secondary data and the analysis method used was the classical assumption test, multiple linear regression, t test, f test and coefficient of determination. . Based on the results of data analysis, it can be concluded that the ROE variable has a positive and significant effect on stock returns, the DER variable has a positive and insignificant effect on stock returns, the TATO variable has a positive and insignificant effect on stock returns. There is a significant influence of the ROE, DER and TATO variables simultaneously on Stock Return.

scholarly journals Does Financial Performance Matter? Evidence on the Impact of Liquidity and Firm Size on Stock Return in Indonesia

2020 ◽  
Vol 11 (4) ◽  
pp. 546
Author(s):  
Mochammad Chabachib ◽  
Ike Setyaningrum ◽  
Hersugondo Hersugondo ◽  
Intan Shaferi ◽  
Imang Dapit Pamungkas
Keyword(s):  
Stock Returns ◽  
Firm Size ◽  
Significant Relationship ◽  
Stock Return ◽  
Stock Exchange ◽  
Mediating Effect ◽  
Return On Equity ◽  
Stock Investment ◽  
Equity Ratio ◽  
The Impact

In the modern era, stock investment can attract domestic investors or foreign investors. The objective is to invest their funds at the capital market that expect higher stock returns. The study aims to analyze factors that can affect stock returns and know the mediating effect of return on equity. The object of this research is the property and real estate sector that is listed on the Indonesia Stock Exchange from 2013 to 2018. This research used debt to equity ratio, current ratio, total asset turnover, firm size as independent variables and stock returns as dependent variables. Path analysis is used as reseach method tools with SMART PLS.The result says that debt to equity ratio and return on equity has a positive significant relationship with stock return, meanwhile firm size has a significant negative significant relationship with stock returns. Furthermore, return on equity can mediate the relationship between debt and equity ratios to stock returns.

scholarly journals PENGARUH DEBT RATIO, DIVIDEN PAY OUT RATIO, RETURN ON EQUITY, PERUMBUHAN LABA, UKURAN KORPORASI, DAN PERPUTARAN KAS OPERASI TERHADAP PER (Studi Di Korporasi Sektor Manufaktur yang Listing di Bursa Efek Indonesia Jangka Waktu 2009 – 2012)

KEBERLANJUTAN ◽  
2019 ◽  
Vol 4 (1) ◽  
pp. 970
Author(s):  
Herlambang Herlambang
Keyword(s):  
Stock Exchange ◽  
Significance Test ◽  
Debt Ratio ◽  
Manufacturing Companies ◽  
Individual Parameter ◽  
Dividend Payout ◽  
Return On Equity ◽  
Earnings Growth ◽  
Independent Variables ◽  
Price Earnings Ratio

The mean of this research is examine  influence  debt ratio, dividend payout ratio variable, return on equity variable, earnings growth, size, and operating cash flow on price earning ratio (PER) in finance and manufacturing companies in Indonesia Stock Exchange in the period of year 2009 to 2012. The population in this study is the company in the sector manufacturing listed on the Indonesia Stock Exchange period of year 2009 to 2012. Samples were taken by purposive sampling and obtained 45 companies in the manufacturing sector as sample. Linear Regression Analysis with Simultaneous Significance Test (F statistic Test) and Individual Parameter Significance Test (Test Statistic t) is an analytical technique used in this study. The results showed that the independent variables of the debt ratio variable, size together significantly influence the price earnings ratio (PER) in the financial sector companies in the BEI and the independent variables of the dividend payout ratio and earnings growth together significantly influence  price earnings ratio (PER) at manufacturing companies listed on BEI. These results support data obtained from the World Bank regarding Indonesia's economic growth in 2012 on the production side, manufacturing performance is quite strong. This increase was achieved by the relatively large performance  domestic sectors such as those in processed foodstuffs, processed various beverages and processed various tobacco products (increasing 10.4% year on year) as well as fertilizer yields, yields from chemicals and rubber products (increased by 15.4% from year to year).

scholarly journals PROFITABILITAS TERHADAP RETURN SAHAM

2018 ◽  
Vol 19 (3) ◽  
pp. 36
Author(s):  
Happy Sista Devy
Keyword(s):  
Financial Performance ◽  
Stock Returns ◽  
Return On Investment ◽  
Stock Return ◽  
Stock Exchange ◽  
Investment Decision ◽  
Control Variable ◽  
Return On Equity ◽  
Ratio Size ◽  
Return On Sales

The development of the capital market is currently followed by the development of the stock market is increasingly in demand by investors as well, seen from data on Indonesia Stock Exchange (IDX) which shows that the stocks included in the sharia has increased. An investor will do the analysis to make an investment decision. The analysis is technical and fundamental. One of the fundamental analysis is profitability ratio analysis issued by the company. Good financial performance will be the information used as a positive signal by investors, because companies that have good financial performance will provide more benefits for investors. The purpose of this research is to examine and analyze profitability variables on stock returns in Jakarta Islamic Index (JII) period 2012-2016. Population of this research is a company included in the Jakarta Islamic Index (JII). This research using sample criteria, we obtained a sample of 21 companies included in the Jakarta Islamic Index (JII) for the period of 2012-2016 and published annual financial report data on Indonesia Stock Exchange (IDX) required during the study. The variables used in this research are earning per share (EPS), return on equity (ROE), return on asset (ROA), return on sales (ROS), return on investment (ROI), size as control variable, and stock return as the dependent variable. Result of this research show that investor on Jakarta Islamic Index (JII) see simultaneously the profitability ratio as a signal for investment decision making. Variable size can be used as control variable in that used in this research. Profitability ratios that are taken by investors are return on assets (ROA), earnings per share (EPS), and return on investment (ROI). So that should be a special attention for companies incorporated in the Jakarta Islamic Index (JII) to increase investor interest to invest in the company. Keywords : stock return, profitability ratio, size.

scholarly journals Faktor-Faktor yang Mempengaruhi Return Saham Syariah Perusahaan Sub Sektor Tourism, Restaurant, and Hotel

2021 ◽  
Vol 1 (2) ◽  
pp. 384-397
Author(s):  
Harivani Nurwiyati ◽  
Diharpi Herli Setyowati ◽  
Destian Arshad Darulmalshah Tamara
Keyword(s):  
Stock Returns ◽  
Service Sector ◽  
Inflation Rate ◽  
Stock Index ◽  
Current Ratio ◽  
Significance Level ◽  
Return On Equity ◽  
Panel Data Regression ◽  
Negative Effect ◽  
Equity Ratio

The purpose of this study is to analyze the influence of current ratio, debt to equity ratio, return on equity, and inflation rate to return stock of sub sector tourism, restaurant, and hotel companies listed on Indonesia Sharia Stock Index (ISSI). The population used is sharia service sector companies listed on ISSI. The sample is determined using purposive sampling. This research is a descriptive study with a quantitative approach. The data analysis method used is a panel data regression. Based on the results with a significance level of 5%, this study shows: Current ratio, Debt to equity ratio, and Inflation rate partially have No. significant effect to return stock. Return on equity partially has asignificant negative effect to return stock. Current ratio, debt to equity ratio, return on equity, inflation rate simultaneously have a significant effect on stock returns.

Consumption, aggregate wealth and expected stock returns: a quantile cointegration approach

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ricardo Quineche
Keyword(s):  
Stock Returns ◽  
The United States ◽  
Labor Income ◽  
Left Tail ◽  
Long Run ◽  
Short Run ◽  
Excess Stock Returns ◽  
Aggregate Wealth ◽  
Risk Free Rate ◽  
The Right

Abstract This paper empirically examines the long-run relationship between consumption, asset wealth and labor income (i.e., cay) in the United States through the lens of a quantile cointegration approach. The advantage of using this approach is that it allows for a nonlinear relationship between these variables depending on the level of consumption. We estimate the coefficients using a Phillips–Hansen type fully modified quantile estimator to correct for the presence of endogeneity in the cointegrating relationship. To test for the null of cointegration at each quantile, we apply a quantile CUSUM test. Results show that: (i) consumption is more sensitive to changes in labor income than to changes in asset wealth for the entire distribution of consumption, (ii) the elasticity of consumption with respect to labor income (asset wealth) is larger at the right (left) tail of the consumption distribution than at the left (right) tail, (iii) the series are cointegrated around the median, but not in the tails of the distribution of consumption, (iv) using the estimated cay obtained for the right (left) tail of the distribution of consumption improves the long-run (short-run) forecast ability on real excess stock returns over a risk-free rate.

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