Factors Affecting Stock Return of Manufacturing Companies in Indonesia

Abstract

This study aims to examine the effect of firm size, firm age, solvency ratio, interest rate and growth rate on the performance of stock returns on manufacturing companies. Research data uses financial statements of manufacturing companies listed in Indonesia Stock Exchange as many as 77 companies as a sample with the research period from 2014-2018. Research method uses hypothesis testing and multiple regression analysis. The results showed that the solvency ratio and growth rate had a positive and significant effect on stock returns. Meanwhile, firm size, firm age and interest rate have no effect on stock returns. Maximizing investor stock returns and company profits can be realized by paying attention to micro and macroeconomic factors in the form of solvency ratio and growth rate Keywords: firm age, firm size, growth rate, interest rate, solvency ratio, and stock return