FINANCIAL PERFORMANCE OF THE MANUFACTURING SECTOR CONSUMPTIVE GOODS SUB-SECTOR IN INDONESIA

Abstract

This study aims to examine and analyze the influence of Current Ratio (CR), Return On Assets (ROA) and Debt to Equity Ratio (DER) on Dividend Payout Ratio (DPR) and its impact on Stock Return on Manufacturing Companies of Consumptive Goods Sub-sector listed in Indonesian Stock Exchange in the period of 2012 until 2016. The data used are secondary data in the form of company's financial statements obtained from Indonesia Stock Exchange. The sample of this study using purposive sampling method and obtained 14 companies that meet the criteria set. The method of data analysis using panel data regression analysis, then tested the best model and classical assumption test. The result of data analysis show that partially CR and DER have an insignificant negative effect to Stock Return and ROA has an insignificant positive effect to Stock Return. Furthermore, partially CR has an insignificant positive effect to DPR, ROA has an insignificant negative effect to DPR and DER has a significant negative effect to DPR. Simultaneously CR, ROA and DER have an insignificant positive effect to Stock Return but simultaneously CR, ROA and DER have a significant positive effect to Stock Return.