ANALYSIS OF THE INFLUENCE OF RETURN ON ASSET, DEBT TO EQUITY RATIO, AND DIVIDEND PAYOUT RATIO TOWARD STOCK RETURN OF MINING COMPANIES LISTED IN IDX FROM 2010 – 2014.

Abstract

Mining industry is one of the main key of the industry in Indonesia since the Indonesia’s resources supports the development of this industry. Many mining companies are listed in Indonesia Stock Exchange and it proves the existence of this industry. Investors as a part of the market tend to give attention to this industry. Stock 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, and Dividend Payout Ratio toward Stock Return. This research uses multiple linear regression technique and mining companies as the samples. There are nine companies as the samples which are taken by purposive sampling and five years observation from 2010 until 2014. Therefore, there are forty five 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 Stock Return. Partially statistically Debt to Equity Ratio and Dividend Payout Ratio are giving significant influence toward Stock Return.