The Effect of Return on Assets and Return on Equity Toward Changes in The Price of Transportation Companies

1Niki Hadian, Mohd Haizam Mohd Saudi

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Abstract:

This research purposes to examine the Return On Assets (ROA) effect’s and Return On Equity (ROE) on changes in share prices listed on the ISX at the 2015-2018 period. The method used in this research’s explanatory research. The data used is data of secondary. The population at this research’re all sub-sector of transportation companies listed at the ISX at the period of 2015-2018. Sampling using a purposive method, so the number of samples obtained by 11 corporates with a total observation of 44 data. The analysis of data method uses analysis of panel data and data testing is done using the Eviews 8 program. The results showed that ROA partially had no effect on changes in stock prices. ROE affects the changes in stock prices. With a determination coefficient’s (R2) of 0.217053 which denotes that the variability of the dependent variable that is changes in stock prices can be explained by the variables of independent specificaly Return On Assets and Return On Equity in this study amounted to 21.7053%, and the remaining 78.2947% is explained by others than the research model.

Keywords:

Return On Assets, Return On Equity, and Changes in Stock Prices.

Paper Details
Month2
Year2020
Volume24
IssueIssue 2
Pages8360-8368