Profitability, Dividend of Payout Ratio and Growth Net Cash Flow on Stock Return

Authors

  • Fajar Nurul Fauzi*, Reno Priambudi, Rohmat Hidayat, Egi Gilang Ramdani, Yati Mulyati

Abstract

Return is the return or profit desired by investors in investing. In order for the investment to
be carried out in accordance with expectations, investors need to analyze the financial ratios
in the financial statements. In this study the ratios used are Return On Asset, Dividend
Payout Ratio and net cash flow growth. The purpose of this study was to determine how the
effect of Return On Assets, Dividend Payout Ratio and net cash flow growth on stock returns
in LQ-45 companies on the Indonesia Stock Exchange in the 2017-2019 period. The number
of samples included in the criteria was 36 companies with purposive sampling technique. The
data used is secondary data in the form of annual financial reports obtained from the website
www.idx.co.id. Data processing uses Eviews 11 with panel data regression model. The
results showed that the Return on Assets and Dividend Payout Ratio had an effect on stock
returns, while the Growth Net Cash Flow had no effect on stock returns.

Published

2020-10-17

Issue

Section

Articles