THE INFLUENCE OF ROA, ROE, NPM TOWARDS STOCK RETURN (A STUDY OF SELECTED 3 PROPERTY COMPANIES LISTED IN LQ45)

Abstract

Investment activities are expected to generate higher stock return. The investor consider carefully choose which company that is has reached good performance. Fluctuate of stock price of property industry in the last period attracted researcher to define the impact behind the condition. Therefore, this research aimed to analyze the influence of Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) towards stock return in property companies from 2010 to 2013 from each quarter. The research method that used in this study is quantitative method. This research was conducted using secondary data. The method used is multiple linear regression model. Sampling technique used was purposive sampling by taking 3 property companies listed in LQ45. The result of this research show that Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) simultaneously and partially have significant influence toward stock return. Based on the result, the author suggested the companies to maintain or improve their financial performance to attract new investors.