THE INFLUENCE OF PROFITABILITY RATIO, LIQUIDITY RATIO, ACTIVITY RATIO & SOLVENCY RATIO ON STOCK RETURNS (EMPIRICAL STUDY OF FINANCIAL SECTOR LISTED ON INDONESIA STOCK EXCHANGE IN 2015-2020)

Abstract

The aim of this research is to find out whether the independent variable which were Return on Asset, Current Ratio, Total Asset Turnover and Debt-to-Equity had an effect on Stock Returns. The type of this research was quantitative descriptive research. The population used for this research was financial company in banking sector that was listed on Indonesia Stock Exchange in 2015-2020. For sample, the researcher used purposive sampling where 14 companies out of 47 was selected according to the criteria of the sample. This research used multiple liner regression as the data analysis technique. The result of this research shows that profitability ratio and liquidity ratio had an effect on stock returns, while activity ratio and solvency ratio had no significant effect on stock returns.