Microsoft Word - 18952-Article Text-writer2-new For Scho Receive doi:10.5 Abstra The aim 2009 to analysis compan (ROE); ratios e price-ea The res designa returns. Keywo Funda recastin ool of Busin ed: June 7, 2 5296/ajfa.v ct m of this pa o 2016 for a s utilizes e ny’s operati liquidity r earnings pe arnings ratio sults from ate insignifi . rds: Stock amenta ng Stoc Ind ness Econom E- 2022 Ac 14i2.18952 aper will be all 30 comp ight indicat ions i.e pro atios (Curre er share (E o (P/E). our model cant relatio Market, Ma al Analy k Retur dustrial MSc. mics and M -mail: stefan ccepted: July URL: ht e achieved panies listed tors aiming ofitability ra ent Ratio); EPS), divid indicate th onship betw arket Indice 1 ysis and rns: Ev l Averag . Stefan Tan Management n.tanevski@ y 27, 2022 https://doi.or through an d on the Do g to provid atios: return Leverage R dend per sh hat fundame ween most o es, Fundame Asian d Its Pr vidence ge (DJI nevski t, University @uacs.edu.m Publis rg/10.5296/ nalysis of da ow Jones In de informati n on assets Ratio (Debt hare (DPS) ental analys of the explan ental Analys n Journal of F redictiv from D IA) y American mk shed: Decem ajfa.v14i2.1 ata for the ndustrial Av ion regardin (ROA) an t to Equity) ), price to sis is weak natory varia sis, Financia Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro ve Powe Dow Jo College Sk mber 1, 202 18952 8-year peri verage (DJI ng four are nd return on ) and Mark book ratio k given tha ables and th al Ratios ccounting 946-052X 14, No. 2 think.org/ er in ones kopje 22 od from IA). The eas of a n equity et-based o (P/B), t results he stock 1. Intro The sto dates b specula 400 yea saw the index, r operatin importa compan every i Clemen method enablin operate benchm Specific boomin since th investin knowle financia conside decision analysis althoug who do analysis potentia the sho stock p (Muham 1.1. Lite The firs was not such as 1936). among fundam investor Abarban oduction ock market back to the ating that th ars later the e need to c representing ng in the in ance for th nies. Today important s ns, 2000). A d (Shoven a g for the fl in multiple mark when it cally with ng, the lates he crash in ng in the s dge or hav al losses as er the facto n making s s, especially gh technical o not posse s (Menkho al for growt rt run. How prices of mmad and A erature revi st applicatio t until 1936 : assets, liab Today, m which is mentals are n rs can achi nell and Bu has been a 1400s in A he price wo first stock e create what g 12 compa ndustrial se he U.S Eco y, the 30 bl sector of th Although o and Clemen ow of fund e sectors. Fu t comes to p the recent st liquidity n March 20 stock marke ing no und we have se ors involved should not y in the con analysis is ess the abil ff, 1997). th and prosp wever, the m the specif Ali, 2018, p. iew on of Fund 6 when Gra bilities, exp many researc the ‘pione not always r eve abnorm ushee (1996 around for c Amsterdam ould eventua exchange w is today kn anies which ector, as at onomy. Late lue-chip co he econom often labele ns, 2000), ds from inve urthermore performance developme injections 20, the DJI et exposes derstanding een many tim d in stock be done wi nstantly shi often secon lity to prod Fundament pect in the main concep fic securitie .84). amental An aham and D penses, earn chers have eer work’ reflected in mal returns ) found that 2 centuries, in m, Netherlan ally rise, en was founded known as th h were liste the time m er on in th ompanies w my except u ed as a fla DJIA is of estors and g today, mos e-reporting ents in the have enabl IA has reco one to a g of it. Poor mes in the p price move ithout incor ifting stock nd to fundam duce their o tals are exc long-run an pt of both es are un nalysis in te Dodd analy nings and m studied the of Ou and prices conc as well as t the approa Asian n fact, the nds, where nabling them d. In 1896 C he Dow Jon ed on the N manufacturin he ‘roaring with large c utilities and awed indexe f great imp granting the t mutual fu . e economy, ed many to overed in l great risk i investment past, and m ements and rporating an market. Bo mental, and own expect cellent in g nd find grea is the same dervalued erms of pre yzed the fun management e financial d Penman cluding that predict futu ach of Ou an n Journal of F first idea o merchants m to gener Charles Dow nes Industri New York S ng compani ’ 20s it wa apitalization d transporta es due to i portance to em access to nds and eco , the stock o bet in the less than a if done wit t decisions any new inv d returns. G ny fundame oth analyse d it is mainly tations base guiding inv atly underva e “buy the s and sell w edicting stoc ndamentals expertise ( signals and (1989) wh t through fu ure earning nd Penman Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro of the stock would buy rate profits. w and Edwa ial Average Stock Excha ies were of as upgrade n represent ation (Shov its price-w the U.S ec o companie onomists us k market h e stock mar year. None thout any p often lead vestors ofte Generally sp ental and t es go hand ly used by in ed on fund vestors to d alued comp securities w when over ck returns h of share v (Graham an d drawn inf ho discover undamental gs. Contrary (1989) with ccounting 946-052X 14, No. 2 think.org/ k market y goods Almost rd Jones e (DJIA) ange, all f a great d to 30 t almost ven and weighting conomy, es which se it as a has been rket and etheless, previous to great en fail to peaking, echnical in hand, nvestors damental discover panies in when the rvalued” however valuation nd Dodd, ferences, red that analysis y to this, hholds a signific to why appropr doubled among Muham models stock r fundam Exchan returns. Dwiyan evidenc Earning Likewis market as well (DPS) a dividen per sha profits, Iwaisak stock re Fama a predicti research valuatio sense disappo BTM ra conclud Howeve signals insignif Muham stock re Equity accordin estimati cant number they are g riate financ d their retu which is a mmad and A concluded returns in mental analy nge conclud . nto and Hat ce from the gs Per Shar se, Ebrahim and found l as a direc and stock r nds and earn are are the company d ko (2010) c eturn on the and French ive ability w hed the re on of “BTM that value ointments ar atio predict ding the asso er, not all f and stock ficant effect mmad and A eturns in Pa (D/E) rati ng to the f ing future s r of explana good signals ial signals. urns in a ca high P/E ra Ali (2018) u that some Pakistan. C ysis drawin ding a posi tta (2012) in Indonesian re (EPS) is mi and Chad a direct rel ct and signi returns. Add nings and th most powe dividends a conclude th e U.S marke (1992) con when it com elationship M ratio has stocks w re larger on ts how the ociation bet findings sho returns. Na t on the sto Ali (2018) akistan, add o, has a n findings of tock returns atory variab s in predict Moreover, alendar yea atio. To fur used five f of the varia Contrary to ng evidence itive yet in nvestigated n Stock Exc s positively degani (201 ationship b ificant relat ditionally, T he behavior erful indica affect prices hat (P/E) rat et relative to ncluded that mes to assess between an ability will have n average th market reac tween Book ow a signifi amely, Curr ock prices i found nega ditionally, D negative rel Ahsan (20 s. 3 bles, stating ting future Reinganum ar, finding t rther inspect fundamental ables have o this, Iqb e from non nsignificant the effects change for t y related to 1) studied t between Ear tionship bet Twaijry (20 r of stock re ator in expl s of shares atio exerts q o the Japane t book-to-m sing stock r book-to-ma to predict more earn han those o cts to an ea k-to-Market icant and p rent Ratio ( in Indonesi ative relatio Dwiyanto a lationship 012), Return Asian g that some earnings, h m (1988) re that all sha t the predic l signals an significant bal et. al n-financial relationshi of compan the period o stock pric the compan rnings Per S tween curre 06), who te eturns concl laining stoc 15 times a quite strong ese stock ma market ratio returns. Add arket ratio earnings di nings disap f growth st arnings disa t Ratio and r ositive relat (CR) and R a. Dwiyant onship betw and Hatta (2 with stock n on Equity n Journal of F do not have owever the esearched 2 are 9 comm ctive power nd through and positiv (2018) per firms on th ip between nies' fundam of 2002 - 20 es on the I nies listed o Share (EPS) ent period ested the re luded that c ck returns a as much. M ger influenc arket. is among ditionally, D , earnings isappointme ppointments ocks. They appointmen returns. tionship bet Return on A to and Hatta ween Curre 2012) also prices in y has a sig Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro ve any sound ey do not o 222 compan mon charact r of financia multiple st ve relationsh rformed F- he Pakistan signals an mental facto 006 conclud Indonesian on the Irania ) and stock dividend p elationship b changes in d and relativ Moreover, A ce when pr the indicato Donelly (20 expectatio ents, at leas ts and tha y also show nt” (p.26), th tween the f Assets (ROA ta (2012). L ent Ratio (C found that Indonesia. gnificant im ccounting 946-052X 14, No. 2 think.org/ dness as offer any nies that teristics, al ratios, tatistical hip with -SCORE ni Stock nd stock ors using ding that market. an stock returns, er share between dividend e to the ono and redicting ors with 14) who ons and st in the at these that the herefore financial A) have Likewise CR) and Debt to Lastly, mpact on 1.2. Hyp Based o any rela Hypoth ROE) a Hypoth Ratio) a Hypoth BTM an 2. Meth This pa The sec period o we con financia were di operatio The lat perform (correla As men account perform fundam Append by Reim Econom Basic re SR = β β8*D/E SR,i,t = SR - sto to incre Price + β0 - (in potheses on our litera ationships b hesis 1: Th and stock ret hesis 2: Th and leverage hesis 3: Th nd DPS) an hod aper aims at condary dat of 2009 - 2 ntinue to wo al statement iscussed in onal aspects tter will be ming a desc ation and mu ntioned prev ting inform mance of a mental analy dix we list a mer (2009, p metric Mod egression eq β0 + β1*CR E + ɛ, where =[(P,i,t – Pi,t ock return, ease/decreas Dividends) ntercept), the ature review between stoc here is no s turns here is no s e ratio (Deb ere is no si nd stock retu t exploring a used in th 2016. Howe ork and ana ts will be e the previou s of a comp e achieved criptive sta ultiple regre viously, “Fu ation, such a company” yst consider and define t p.75, p.289, del quation: Y = β0 + β R + β2*RO e, t-1)+Div1/ P the depend se in stock ) divided by e stock retu w we have f ck returns a significant ignificant r bt to Equity) ignificant r urns the predict he paper is d ever, since t alyze the co extracted an us section. T pany: profit by calcula atistical ana ession) of th undamental as financia ” (Tanevsk rs signals w the ratios w , p.338, p.38 β1X1 + ɛ, w OA + β3*RO Pi,t-1]x100% ent variable k value (En y the Beginn urn when all 4 formed the and a set of relationship relationship ) and stock relationship tive power drawn from the DOW r ompanies li nd analyzed The goal o tability, liqu ating all of alysis (cent he data usin l Analysis i al signals w ki, 2021). which may which will b 88, p.389) which can be OE + β4*D %, e in this mo nding Period ning Period l given vari Asian following h variables. p between between li returns between m of fundame m the 30 com evises its c isted in 200 d via the eig f the signal uidity, solve f the ratios ral tendenc ng SPSS sof is a process which in retu Given this y slightly d be used in th e rewritten DPS + β5* odel defined d Stock Pri Stock Price iables are eq n Journal of F hypotheses i profitability iquidity me market-based ental analys mpanies list omponents 09. Moreov ght fundame ls is to eval ency and m s listed bel cy) and cor ftware. s in which urn provide s, a possib ifferentiate. his paper as as follows: BTM + β6 d as the perc ice - Begin e qual to 0 - w Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro in order to y ratios (R easured in ( d ratios (EP sis in stock ted on DJIA from time ver, data fro ental signal luate the fo market perfo low as wel rrelational an investor e data relate bility exists . Therefore s stated in t 6*EPS + β7 centage cha nning Perio which in thi ccounting 946-052X 14, No. 2 think.org/ evaluate ROA and (Current PS, P/E, returns. A for the to time, om their ls which our main ormance. ll as by analysis r studies ed to the s that a e, in the the book 7*P/E + ange due od Stock is model would h any equ β1 - (b1 ɛ - ‘sta equation We estim CR - cu ROE - BTM - P/E - pr P0 - Ini 3. Resu 3.1 Des Explana Table 1 As evid note tha 0 is pr represen the med measure or 0.28 enjoys that it h the stan between on aver respecti have no pra uity on their 1 or beta 1), andard erro n mate the ec urrent ratio return on eq book to ma rice to earni itial Stock P ults scriptive Sta atory variab . Descriptiv dent from T at the due to resent, ergo ntation of th dian which e of the sho above the a favorable has solid op ndard deviat n 0.58 and rage, compa ively. With actical/econo r books. , the change or’, other fa conometric m quity arket ings Price atistics bles ve Statistics Table 1, the o the inclus o it can gre he liquidity h is not aff ort-term liqu minimum a e short-term perations sin tion of 0.76 2,1 (one sta anies were the most e omic meani e in the inde actors omit model with average sh ion of finan eatly influe y of financia fected by e uidity. The acceptable c m liquidity w nce elevated 6 indicates t andard devi able to gen efficient uti 5 ing, as a co ependent va tted and th ordinary le ROA - r DPS - di EPS - e D/E - de P1 - End hort term liq ncial entitie ence the av al institution extreme val results indi current ratio with a curre d liquidity i that 68% of iation away nerate 7.6% ilization of Asian mpany cann ariable, for a herefore not east squares return on ass ividend per arnings per ebt to equity ding Stock P quidity is 1, es in our sam verage and ns. Therefo lues and it icate that th o of 1. On t ent ratio of is an indica f the observ y from the m % return, on assets bein n Journal of F not have no a unit chang t explained by pooling sets share share y Price 34, howeve mple minim is not by re we have provides a he median cu the other ha 3,49, and h tor of such. ved current mean). Rega assets and ng 24%, ye Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro o turnover, a ge in the var d by the re g cross sectio er it is impo mum current any means e decided to a more tran urrent ratio and, Cisco hence it can . Last but n ratios are c arding prof 24.41% on et ranging t ccounting 946-052X 14, No. 2 think.org/ assets or riable gression ons. ortant to t ratio of s a true o include nsparent o is 1,28, Systems n be said not least, clustered fitability, n equity, to -11%. ROE on thus it s be a mo only 25 in light in a co brought may int In the c in P/E r in the d a high multiple multiple Contrar which i compan share, i earning was $1, earning compan 3.2 Cor The cor availabl correlat of 0.05 insignif demons Earning Returns n the other should be n ore reliable 5% of our ob of the data ontinuous s t about a ne terpret the u case of the m ratio as evid dataset) of - standard d e in the ra es in conjun rily, Book t implies that nies trading in both case gs per share ,36 while th gs per shar nies during t rrelation Ma rrelation ma le literature tion with the 5. On the ficant corre strates a sig gs ratio, lea s decrease a hand has e noted that as indicator. A bservations published i share repurc egative stoc unfavorable market base dent per the 808.78 and deviation of ange of -69 nction with to Market d t on averag at 7 times es substanti and dividen he average re can be the period o atrix atrix (see Ta e, see: (Mu e dependent other hand elation with gnificant ye ading to a c and vice ver even higher s in the case As for the l had a debt in the yearly chase progr ckholder's e indebtedne d explanato e maximum 663.45 resp f 84.01 whi .33 and 98 other metri does not ex ge companie its book va ial range of nd per shar earnings p manipulate of 2009-201 ble 2) indic uhammad a t variable st d, Return o h stock retu et negative conclusion rsa. 6 r variation w e of current level of inde to equity ra y reports it ram which equity (see M ess present i ory variable and minim pectively, w ich suggest 8.69, conseq ics when jus xhibit such es are tradin alue. As for f values wa re respective er share wa ed by shar 16, and ergo ates that cur and Ali (20 tock return, on Assets, urns. Thenc correlation that as Pri Asian with values t ratio, the m ebtedness, f atio lower th must be no h considerab McDonald’s in many of o es, extremely mum values with an aver ts that 68% quently it i stifying the a high devi ng below th r the earnin s noted, -6. ely, where t as $3.92, ho re buyback o potentially rrent ratio (f 018), exhib where sign Return on ce, the only n with the d ice to Earni n Journal of F ranging fro median retu from Table han or equa ted that man bly decreas s Annual R our observa y high rang (i.e. lowest rage P/E mu % of the co is best that financial he iation from heir value, ngs per shar .41 to 15,06 the average owever we s which w y inflated. findings are bits negativ nificance is d n Equity ex y variable dependent v ings ratio i Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro om -41% to urn on equit 1, it is evid al to 0.975, h any compan sed their eq Report 2016) ations. ge in values t and highes ultiple of 14 ompanies ha t investors ealth of com m its mean o with only 1 re and divid 6 and 0 to e dividend p must consi was ongoin e consistent ve yet insig defined as a xhibit posi in this mo variable is increases th ccounting 946-052X 14, No. 2 think.org/ o 242%, ty would dent that however, ies were quity or ), which is noted st values 4.68 and ad a PE use P/E mpanies. of 0.475 1 out 30 dend per 5.50 for per share ider that g many with the gnificant at a level tive yet odel that Price to he Stock Table 2 4. Testi Multipl homosc aforeme or valid 240 obs (see Sch In regar and exp Scatterp axis few . Correlatio ing Assump le regressio cedasticity, entioned the d. Given thi servations, hmidt. et. al rds to the li planatory va plot). As ev w observatio on Matrix ptions on require multicolli e assumptio is we have which is ab l, 2014). inearity assu ariables mus vident from ons are abo Figu es that ce nearity an ons are viola decided to bove the mi umption, gi st exist. The our scatter ove the uppe 7 ure 1. Scatte ertain assum nd autocor ated, interpr include 30 inimum req iven that a l e results fro rplot, no lin er limit (i.e Asian erplot mptions su rrelation a retation and 0 observatio quirement a linear relati om the scatt near relation ., +3). To ev n Journal of F uch as no are tested. d inference m ons per para s per the fi onship betw ter plot are s nship exists valuate whe Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro ormality, l If any may not be ameter or a indings in l ween the de shown in (F , likewise o ether the de ccounting 946-052X 14, No. 2 think.org/ linearity, of the reliable a total of iterature ependent Figure 1, on the Y eviations are base as data line of b <1 is th testing i The thi results i Varianc behavio literatur concern In (Tabl present, that the perform general explana is evide to concl ed on realis with large d best fit, redu he maximum indicates th ird importan in Figure 2, ce Inflation or of an ind re suggests n)” (Landau F le 3 Regres , a maximu e model is med a Pearso rule of th atory variab ent between lude that mu stically expl deviations c ucing our m m acceptabl hat no value nt assumpti , indicate th Factor (V dependent v s that “VIF u and Everit Figure 2. Tes sion Output um value of free from m on’s correla humb for a bles. As evid n Dividend P ulticollinea lainable valu can signific model’s valid le value, an s greater tha ion is the o hat the assum VIF) is appl variable by Fs above 10 t, 2004, p.1 sting the no t and Collin 2.47 and a multicolline ation in orde maximum dent from (T Per Share an rity is not p 8 ues or error cantly impai dity. Per Sta nd anything an 0.635 are one of mul mption of m lied which interacting 0 or tolera 16). ormal distrib nearity Stati minimum v earity. Aside er to further m correlation Table 2, Pea nd Earnings present in ou Asian rs we proce ir the statist atistics Solu g above may e observed ltivariate no multivariate measures t g with anoth ances below bution of the istics) low v value of 1.4 e from the prove no ex n coefficien arson’s Corr s Per Share. ur model. n Journal of F ed to test fo tical analysi utions (2019 y prevent pr in our mode ormality, in normality is the level o her indepen w 0.1 are s e error term values for m 44 for our m Variance In xistence of nt of 0.8 is relation), a c From the l Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro or Cook’s D is and thus 9), Cook’s D roper analy el, thus we n all variab s met. In ou of influence ndent variab seen as a c ms. multicolline model, we a nflation Fa multicollin s allowed b correlation latter, it is su ccounting 946-052X 14, No. 2 think.org/ Distance, shift the Distance ysis. Our can. les. The ur model e on the ble. The cause of arity are ascertain ctor, we earity. A between of 0.662 ufficient Table 3 In addit of corre tested w Durbin- where v assump scattere 5. Regr Results Given t = 2.639 associat explain . Regression tion to mult elation betw with the Du -Watson sta values close ption of hom ed across the F ression Out related to o the data in T 9, p<0,05) ted with sto ed by our m n output an ticollinearit ween errors urbin-Watson atistic of 1, e to 2 sugg moscedastic e regression Figure 3. Sc tput our statistica Table 4, we and ascerta ock returns. model, whic d Collineari ty, we must . For the p n statistic. T 770. Durbin est less aut city. From F n line. Henc catterplot fo al sample ca have suffic ain that at The R2 ind ch is expec 9 ity statistics t verify for proposed mo The results n-Watson p tocorrelation Figure 3 it ce, the assum or the homo an be found cient eviden least one o dicates that cted given t Asian s autocorrela odel, the au from (Tabl produces a n is present is evident mption is fu scedasticity d in Table 3 ce to reject of the inclu 8,4% of th that macroe n Journal of F ation, which utocorrelatio le 4, Model statistic in t. And final that the va ulfilled. y assumption and Table 4 the null hyp uded explan e variability economic, b Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro h refers to t on assumpt l Summary) the range o lly, we chec ariables are on 4. pothesis, (F anatory vari y in stock re behavioral, ccounting 946-052X 14, No. 2 think.org/ the level tion was ) show a of 0 - 4, cked the equally F (8.231) iables is eturns is political factors Table 4 Furtherm clearly Accord p.10) on a perce Return average each 1 change the stat certain stock p indicato implica 0,001 p average point in a reduct Table 4 Return evidenc profitab signific Our find and Ha associat no stat current statistic Market Earning (Muham given th are omitted . Model Sum more, our r show that c ing to the d n average fo entage poin on Assets a e increase in percentage in the leve tic trade-off point, sugg prices are n ors, a posit ating that 1 percentage e see a redu ncrease in th tion in their 4 further in on Equity ce to rejec bility ratios cance betwe ding is in co atta, 2012). tion exists a tistically sig ratio, lever cal significa and Stock gs per Shar mmad and A he case we h d in our regr mmary results from certain varia data presen for each incr nt, the stock and Return n stock retu e point inc el of indebte f theory ind esting that i not likely t tive associa dollar incre points. Co uction in th heir book to r stock retur ndicates pos and Stock R ct H0 henc s and Stoc een short te onformity w As for th as well, (Sig gnificant re rage as mea ance is noted Returns, fu re and Stoc Ali, 2018 ; D have solid e ression mod m (Table 4, ables are sig nted in (Tab rease in the k returns d on Equity, urns of 0,35 crease in p edness sugg dicating tha if companie o be exper ation is not ease in earni ontrarily, co heir stock re o market va rns, provide sitive yet in Returns (Si ce we stat ck Return. erm liquidity with the exis he level of g>5%), on t elationship asured in D d between P urthermore, ck Returns Dwiyanto a evidence to 10 del. Regression gnificantly r ble 4, Regre short-term decrease by show effec 52 percentag profitability gests no effe at financial es limit leve rienced. As ted betwee ings per sha ompanies t eturns, like alue or a dol ed all other v nsignificant ig>5%), giv te that the Furthermo y as measu sting analys company the basis of exists bet Debt to Equi Price to Ear our model which is c and Hatta, 2 reject the n Asian n Output an related to sto ession Outp liquidity (m y 0,031 per ctive utiliza ge points an respectivel fect on stock distress is erage below s for the se n earnings are, on aver that increas wise, comp llar increase variables re t associatio ven this lac re is insig ore, the m ured in Curr ses (Muham indebtednes f our eviden tween short ity and Stoc rnings ratio exhibits ins contrary to 2012 and Eb null hypothe n Journal of F nd Collinear ock returns. put and Col measured by rcentage po tion of asse nd 0,004 pe ly. While a k returns w felt by inv w that point, ecurity perf per share rage increas se their div panies that n e in price to emain uncha on between k of signifi gnificant as model sugg rent Ratio a mmad and A ss, no stati nce we rejec t-term liqu ck returns. , Dividend significant c the finding brahimi and esis and ergo Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro rity Statistic . llinearity S y Current R oints. Furth ets and capi ercentage po a percentag which is in l vestors only negative ef formance v and stock ses stock re vidend pay noted a per o earnings r anged. Return on icance, we ssociation b gests no st and Stock R Ali, 2018; D istically sig ct H2 and s uidity expre On the oth Per Share, correlation b gs and rese d Chadegani o accept H3 ccounting 946-052X 14, No. 2 think.org/ cs, p.10) tatistics, Ratio) by hermore, ital with oints for ge point ine with y after a ffects on valuation returns, turns by youts on rcentage atio saw n Assets, have no between tatistical Returns. Dwiyanto gnificant state that essed in er hand, Book to between earch of i, 2011), 3. 5.1 Rob In addi importa period o For our differen in Quick to our f our init remaine liquidity and RO changes The sec exclude given n model. model, change one (Pri stock re variable 6. Conc This pap share re an eligi Industri regardin (ROA) Equity) book ra We stud both fin aforeme paper is We con liquidity coheren (2018). bustness test ition to the ant to demon of analysis. r first robust nt short-term k Ratio (QR findings no tial regressi ed unchange y and profit OCE both s s were prese cond robust e the effects no VIF facto Further we we can conf is that relat ice to Earni eturns chan es no notabl clusion per aims to eturns by m ible sample ial Average ng multiple and return ) and Marke atio (P/B), p dy the relati nancial and entioned fin s of further nclude that th y ratio Retu nce with pre Furtherm ting initial mod nstrate the r tness test w m liquidity a R), while pro collinearity ion model, ed (8.3%). R tability varia showed insi ent as. tness test an s of the fin or greater th e proceeded firm that giv tive to our i ings) ratio is ge for a do le changes w assess whe means of fun e with 240 through the e areas of a on equity ( et-based rati price-earning ions betwee d non-financ nancial ratio use to finan here is an in urn on Asse evious resea more, unlike del which robustness o we have perf and profitab ofitability w y is present even thoug Regarding t ables did no ignificance nalyzed the nancial crisi han 2,5, we d with regre ven (F = 2.2 initial mode s significant llar change were presen ther historic damental an observation e utilization a company’s ROE); liqui ios earnings gs ratio (P/E en stock retu cial sectors os used in t ncial analyst nsignificant ts, Current arch done by previous r 11 we tested i of the mode formed a mu bility measu with Return in the mod gh it is sign the regressi ot seem imp (Sig > 5% e period fro is of 2008. concluded ession testin 286, p<0.05 el where 3 v t. Yet P/E st e in P/E wh nt. Hence, w cal financia nalysis of th ns based on n of eight ind s operations idity ratios s per share E). urns and a s and thus e this model ts, and rese association Ratio and S y Dwiyanto research (M Asian in the prev l by replacin ultiple regre ure where sh on Capital E del. The mod nificant ove on coefficie prove the mo %), as for th om 2010 to We first te that multico ng. As for t ), with an R variables ex till exhibits ich is quite we can confi al informatio he Dow Jon n 30 compa dicators wh s i.e. profit (Current R (EPS), divi set of variab explore wha have on sto arch fellow n between pr Stock Retur and Hatta ( Muhammad n Journal of F vious section ng part of th ession analy hort-term liq Employed ( del did not erall (F = 3 ent, the subs odel. Furthe he other va 2016 with ested for mu ollinearity i the overall R2 of 8.3%, y xhibited sign only 0.001 small. 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