THE EFFECT OF PRICE EARNING RATIO, DEBT TO EQUITY RATIO, PRICE TO BOOK VALUE TO STOCK RETURN IN BANKING COMPANY LISTED IN INDONESIA STOCK EXCHANGE

Abstract

This research is conducted to determine the effect of Price Earnings Ratio (PER), Debt to Equity Ratio (DER), Price to Book Value (PBV), towards stock return in partial and also simultaneous. This thesis took sample from banking company that listed in Indonesia Stock Exchange for the year 2011 until 2013. Sampling technique that used in this research is purposive samplings that produce 28 banks as the sample. The analysis is using multiple regressions as the statistical basis. The F-test is conducted to see the effect of independent variable simultaneously and also T-test to determine the effect of independent variable to the dependent variable partially. Significance level is set to 5% for this research. The result of this test showed that PER and PBV has negative effect to the stock return, while DER indicate negative effect to the stock return. The F-test result showed that PER, DER, and PBV did not have significant effect to the stock return simultaneously. Likewise the result of the T-test, each of independent variable did not have the significant effect to the stock return.