Research Paper
Year: 2023 | Month: July | Volume: 10 | Issue: 7 | Pages: 867-877
DOI: https://doi.org/10.52403/ijrr.202307101
Return on Equity, Cash Ratio & Debt Equity Ratio Affect Stock Returns in the Banking Industry Listed on the IDX With Non-Performing Loans as a Moderating Variable
Leon Franciscus Lumban Batu1, Rina Br Bukit2, Narumondang Bulan Siregar3
1,2,3Department of Accounting, Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia
Corresponding Author: Leon Franciscus Lumban Batu
ABSTRACT
This study aims to determine the effect of return on equity, cash ratio and debt to equity ratio on stock returns in the banking industry listed on the IDX with non-performing loans as a moderating variable. The research design used is the simple design method. The population used in this study are banking companies listed on the Indonesia stock exchange for the 2016-2021 period, with a total sample of 26 companies using 156 data samples. The data analysis technique used is panel data analysis using the e-views program. The results of the study show that Return on equity has a positive and insignificant effect on stock returns, Cash ratio has a negative and significant effect on stock returns, Debt to equity ratio has a positive and insignificant effect on Return, Non-performing loans cannot moderate the effect of return on equity on returns stocks, non-performing loans cannot moderate the effect of cash ratio on stock returns and non-performing loans cannot moderate the effect of debt to equity ratio on stock returns.
Keywords: Return on Equity, Cash Ratio and Debt to Equity Ratio, Stock Return, Non-Performing Loan
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