The Effect of Price Earning Ratio (PER), Return On Equity (ROE), Net Profit Margin (NPM), and Return On Assets (ROA) To The Proportion of Foreign Ownership in Jakarta Stock Exchange
Abstract
Riswandi, Heri (2007). The Effect of Financial Ratio PER, ROE, NPM, and ROA
to the Proportion of Foreign Ownership in Jakarta Stock Exchange. Yogyakarta.
Faculty ofEconomics. Islamic University ofIndonesia.
The aim of this research is to find out and analyze the effect of company
financial ratios on proportion of foreign ownership in Jakarta Stock Exchange.
The financial ratios are crucial information for investor in analyzing stock and
predicting the firm's financial power in the future. This research focused on
investigating factors determined the proportion of foreign ownership of
Indonesian Companies listing at Jakarta Stock Exchange in the period of 2002-
2005. This research analyzed yearly data which use proportion of foreign
ownership as dependent variable. The independent variables consist Of Price
Earning Ratio (PER), Return on Equity (ROE), Net Profit Margin (NPM), and
Return on Assets (ROA).
The study uses linear multiple regression model of a proportion of foreign
ownership as the proxy of dependent variable. The model is used to explain the
effect of Price Earning Ratio (PER), Return on Equity (ROE), Net Profit Margin
(NPM), and Return on Assets (ROA) on proportion of foreign ownership. The
result of this research is all four independent variables used in the model,
simultaneously does not have significant effect on proportion of foreign
ownership. In individual test, none of Price Earning Ratio (PER), Return on
Equity (ROE), Net Profit Margin (NPM) and Return on Assets (ROA) have
significant effect on proportion of foreign ownership.
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