Journal of Accounting, Management, Economics, and Business
Vol. 1 No. 1 (2023): Januari

The Analysis of The Effect of Return of Investment (ROI) on Stock Price and Financial Performance of a Company

Christopher Ari Setiawan (Universitas Respati Indonesia)
Tina Rosa (Universitas Respati Indonesia)



Article Info

Publish Date
24 Jan 2023

Abstract

There are many choices of investment instruments that are now available provide more choices for investors. Here are some quite popular investment instruments in Indonesia: Deposits, Gold, Stocks, Property, Stocks, Mutual Funds, and Peer to Peer Lending. Stock is a high-risk investment instrument. Stock are proof of ownership of a company in the capital market. The more shares purchased, the greater the percentage of company ownership obtained. Return on Investment is an important factor where it can be an indicator of a company's financial condition in good condition. One indicator of a good company in managing its finances is by looking at the company's financial performance. This is very important, so that the resources within the company are used optimally in dealing with existing changes and remain in a financially stable condition. This study aims to determine how much influence Return on Investment has on Stock Value and Financial Performance of a company through the results of a synthesis of ten journals themed on Return on Investment analysis in a company that is already listed on the Indonesia Stock Exchange. Return on Investment (ROI) has an influence on the movement of a company's stock price on the Indonesia Stock Exchange. A high ROI value indicates a high stock price in a company. Conversely, a low ROI value indicates that a company's stock price is low. A high ROI value is an indicator of a company having good financial performance, if the ROI value is low, then the company's financial performance is not good.

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Journal Info

Abbrev

analysis

Publisher

Subject

Economics, Econometrics & Finance

Description

ANALYSIS: Accounting, Management, Economics, and Business invites academics and researchers who do original research in the fields of economics, management, Business and accounting, including but not limited to: Economics Monetary Economics, Finance, and Banking International Economics Public ...