Journal of Islamic Economic Laws
Vol 2, No 1 (2019): Journal of Islamic Economic Laws

The Impact of Companies' Internal Factors On The Performance of Their Stock Returns




Article Info

Publish Date
27 Feb 2019

Abstract

It is commonly known that in the capital market, not all stocks of companies that have a good profile will provide good returns to investors. Therefore, an in-depth analysis of the companies’ overall health is needed. This study aims to discuss the impact of companies’ internal factors on the performance of their stock returns. The companies meant here are those listed in the Jakarta Islamic Index (JII). The tool by which the data is analysed is panel data which is a combination of time series data and cross section. By employing companies’data of year 2014-2016, the study shows that Return On Assets (ROA), Net Profit Margin (NPM), Debt to Equity Ratio (DER) and Price to Book Value (PBV) simultaneously had a significant effect on the formation of stock returns of companies listed in the JII. Likewise, those four variables namely; ROA, NPM, DER and PBV partially have a significant effect on the formation of stock returns of companies listed in the JII.

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Journal Info

Abbrev

jisel

Publisher

Subject

Arts Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

Description

The Journal of Islamic Economic Laws is intended to be a media for disseminating results of researches and an exchange of Indonesian scientific work among academics, practitioners, regulators, and the public. The Journal of Islamic Economic Laws covers a variety of research approaches, namely ...