ANALYSIS OF RETURN ON EQUITY IN FOOD AND BEVERAGE COMPANIES

Abstract

This research is intended to analyze the influence of independent variables (CR, DER, TAT, and NPM) partially and jointly towards dependent variable (ROE). The problem mentioned in this research is due to the volatility trend of ROE for 6 years period (2011 – 2016) on selected food and beverage (F&B) companies listed in Indonesia Stock Exchange (IDX) and also the potential research gap of dissimilarities and inconsistent results of previous researches in the same research topic. This research is classified as a causative research and the sampling technique used is the purposive sampling. The data in this research is the secondary data and the technique used in data collection is the documentation technique. Based on its characteristics, the data used is the quantitative data and included into panel data. The analysis of this research is using multiple regression analysis for panel data. With the significance level of α (0.05), the result of multiple regression analysis shows that variable of CR partially has negative significant influence towards ROE, variable of DER partially has no significant influence towards ROE, and variables of TAT and NPM partially have positive significant influence towards ROE. Jointly, the four independent variables (CR, DER, TAT, and NPM) have significant influence towards ROE with the predictive capabilities of 83.9% and the remaining 16.1% is influenced by other factors that are not included in this research regression model.