Descriptive Statistical Test

Oct 13, 2025 by recoveryshake.com 100 views

Effects of EPS, ROA, DER, and PER on Stock Returns in Transportation Companies on the Indonesia Stock Exchange in 2020-2022

In the world of investment, understanding how financial ratios can affect stock returns is crucial for investors seeking to maximize their profits. This study aims to examine the effect of earnings per share (EPS), Return on Assets (ROA), Debt to Equity Ratio (DER), and Price Earnings Ratio (PER) on stock returns in companies in the transportation sector listed on the Indonesia Stock Exchange in the 2020 to 2022 period.

Research Methodology

To ensure the validity and reliability of the results obtained, a number of data analysis techniques were employed in this study. The analysis techniques applied include:

Descriptive Statistical Test: This test illustrates the basic characteristics of the data used in the study, providing an overview of the sample and the variables involved.
Classical Assumption Test: This test identifies whether the data meets the assumptions needed to conduct regression analysis, such as normality, multicollinearity, heteroscedasticity, and autocorrelation.
Multiple Regression Analysis: This analysis technique examines the simultaneous and partial influences of independent variables (EPS, ROA, DER, and PER) on the dependent variable (stock return).
Hypothesis Test: This test determines the significance of the regression results to determine whether the proposed hypothesis can be accepted or rejected.

Research Results

The results of this study showed that:

Partially, Debt to Equity Ratio (DER) has a positive and significant influence on stock returns. This indicates that the higher the proportion of debt compared to equity, the greater the return that can be obtained by investors. This could be caused by good debt management and the efficiency of capital use.
Conversely, variable earnings per share (EPS), Return on Assets (ROA), and Price Earnings Ratio (PER) shows a significant negative effect on stock returns. This condition indicates that although companies are able to generate profits, other factors such as the efficiency of the use of assets and market valuation may not be in line with investor expectations, thereby reducing market confidence.
Simultaneously, all variables (EPS, ROA, DER, and PER) have a positive and significant influence on stock returns. This indicates that the overall financial performance of the company affects investor perceptions, and is important to consider the combination of this ratio when making investment decisions.

Additional Analysis

The financial factors analyzed in this study have important implications for investors in the transportation sector. Investors need to pay attention that although DER can provide a positive signal, too dependent on debt also has the potential to result in high financial risk. Conversely, an understanding of EPS, ROA, and PER which has a negative impact on stock returns needs to be further investigated, perhaps taking into account the broader market conditions and macroeconomic factors that affect the transportation sector.

Implications for Investors

Investors are advised to not only focus on one financial ratio, but also consider the overall financial performance and future prospects of the company. In dynamic market conditions, a deep understanding of these ratios will provide better competitive benefits in making investment decisions.

Conclusion

This study made an important contribution in understanding the interaction between financial ratios and stock returns, as well as highlighting aspects that investors need to pay attention to on the Indonesia Stock Exchange. The findings of this study provide valuable insights for investors, policymakers, and regulators in the transportation sector, and can be used as a reference for future research in this area.

Limitations of the Study

This study has several limitations that need to be addressed in future research. Firstly, the study only focused on the transportation sector, and did not consider other sectors. Secondly, the study only analyzed the financial ratios of companies listed on the Indonesia Stock Exchange, and did not consider other stock exchanges. Finally, the study only examined the effect of financial ratios on stock returns, and did not consider other factors that may affect stock returns.

Future Research Directions

Future research can build on the findings of this study by examining the effect of financial ratios on stock returns in other sectors, and considering other factors that may affect stock returns. Additionally, future research can examine the impact of financial ratios on other financial outcomes, such as dividend payments and share price volatility.

Conclusion

In conclusion, this study provides valuable insights into the effect of financial ratios on stock returns in the transportation sector. The findings of this study highlight the importance of considering the overall financial performance and future prospects of a company when making investment decisions.
Q&A: Effects of EPS, ROA, DER, and PER on Stock Returns in Transportation Companies on the Indonesia Stock Exchange in 2020-2022

In our previous article, we discussed the effects of earnings per share (EPS), Return on Assets (ROA), Debt to Equity Ratio (DER), and Price Earnings Ratio (PER) on stock returns in transportation companies listed on the Indonesia Stock Exchange in the 2020 to 2022 period. Here are some frequently asked questions (FAQs) related to this study:

Q: What is the significance of this study?

A: This study is significant because it provides insights into the relationship between financial ratios and stock returns in the transportation sector. The findings of this study can help investors, policymakers, and regulators make informed decisions.

Q: What are the key findings of this study?

A: The key findings of this study are:

Partially, DER has a positive and significant influence on stock returns.
Conversely, EPS, ROA, and PER show a significant negative effect on stock returns.
Simultaneously, all variables (EPS, ROA, DER, and PER) have a positive and significant influence on stock returns.

Q: What are the implications of this study for investors?

A: The implications of this study for investors are:

Investors should not focus solely on one financial ratio, but also consider the overall financial performance and future prospects of the company.
Investors should be aware of the potential risks associated with high debt levels (DER) and negative EPS, ROA, and PER.
Investors should consider the combination of financial ratios when making investment decisions.

Q: What are the limitations of this study?

A: The limitations of this study are:

The study only focused on the transportation sector and did not consider other sectors.
The study only analyzed the financial ratios of companies listed on the Indonesia Stock Exchange and did not consider other stock exchanges.
The study only examined the effect of financial ratios on stock returns and did not consider other factors that may affect stock returns.

Q: What are the future research directions based on this study?

A: The future research directions based on this study are:

Examining the effect of financial ratios on stock returns in other sectors.
Considering other factors that may affect stock returns.
Examining the impact of financial ratios on other financial outcomes, such as dividend payments and share price volatility.

Q: What are the practical implications of this study for policymakers and regulators?

A: The practical implications of this study for policymakers and regulators are:

Policymakers and regulators should consider the overall financial performance and future prospects of companies when making regulatory decisions.
Policymakers and regulators should be aware of the potential risks associated with high debt levels (DER) and negative EPS, ROA, and PER.
Policymakers and regulators should consider the combination of financial ratios when making regulatory decisions.

Q: What are the contributions of this study to the existing literature?

A: The contributions of this study to the existing literature are:

This study provides new insights into the relationship between financial ratios and stock returns in the transportation sector.
This study highlights the importance of considering the overall financial performance and future prospects of companies when making investment decisions.
This study provides a framework for future research in this area.

Q: What are the potential applications of this study?

A: The potential applications of this study are:

Investors can use the findings of this study to make informed investment decisions.
Policymakers and regulators can use the findings of this study to make informed regulatory decisions.
Researchers can use the findings of this study as a basis for future research in this area.