Abstract: Stock returns can motivate and attract investors to invest. The rate of return on stocks obtained by investors is influenced by macroeconomic factors and financial ratios. This study aims to obtain empirical evidence regarding the effect of inflation, the rupiah exchange rate, Indonesia Central Bank (Bank Indonesia-BI) interest rates, profitability, leverage, and liquidity on stock returns. This research was conducted at 42 companies of hotel, restaurant and tourism sub-sector listed on the IDX. The sample was determined by purposive sampling method totaling 17 companies studied for 7 quarters using quarterly reports, so that there were 119 observational data. Non -participant observation was used and data was analyzed using multiple linear regression. The results show inflation has no effect on stock returns, the rupiah exchange rate has a positive effect on stock returns, BI interest rates have a positive effect on stock returns, profitability has a positive effect on stock returns, leverage has no effect on stock returns, and liquidity has no effect on stock returns.
Keywords: stock returns, macroeconomic, financial ratios.
Title: Macro-Economic Factors and Financial Ratios on Stocks Returns
Author: Ni Wayan Jesi Ulandari, I Gusti Ayu Eka Damayanthi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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