ANALYSIS OF THE INFLUENCE OF RETURN ON ASSET, DEBT TO EQUITY RATIO, CURRENT RATIO, AND PRICE EARNINGS RATIO TOWARD CUMULATIVE ABNORMAL RETURN OF PLANTATION COMPANY (STUDY ON PLANTATION COMPANY LISTED IN INDONESIA STOCK EXCHANGE YEAR 2011 – 2014)

Abstract

Plantation industry is one of the main key of the industry in Indonesia since the Indonesia’s environment supports the development of this industry. Many new companies of plantation industry are listed in Indonesia Stock Exchange and it proves the existence of this industry and development of this industry is running well in Indonesia. Investors as a part of the market tend to give attention to this industry. Abnormal return is one of determinant for many potential investors before they decide their investment. Some information from the financial statements will influence the market condition. This research objective is to analyze the influence of Return on Assets, Debt to Equity Ratio, Current Ratio, and Price Earnings Ratio toward Cumulative Abnormal Return. This research uses multiple linear regression technique and plantation companies as the samples. There are eight companies as the samples which are taken by purposive sampling and four years observation from 2011 until 2014. Therefore, there are thirty two data which are used for further tests. Based on the classical assumption tests the data are valid to be used for further hypothesis tests. Based on the results of hypothesis tests, independent variables are simultaneously statistically giving influence toward the Cumulative Abnormal Return. Partially statistically Debt to Equity Ratio, Current Ratio, and Price Earnings Ratio are giving significant influence toward Cumulative Abnormal Return.