The Determinations of Return on Equity in the Food and Beverage Industry in Indonesia Stock Exchange

Nurjannah Endah Rahayu, Eva Cahaya Reski, Sugiyanto, Jatmiko

2018

Abstract

This study aims to determine the influence of Financing Leverage Multiplier (FLM), Total Asset Turnover (TATO), Operating Profit Margin (OPM), Interest Burden (IB), and Tax Burden (TB) toward Return on Equity (ROE). The type of research is explanatory causality and using secondary data. This study set out five years from 2011-2015. Purposive sampling technique used in the sampling and uses 18 companies from all over the food and beverage companies in Indonesia. The 70 data obtained from financial statements at 18 the food and beverage companies. Data analysis with multiple regression, hypotheses test used partial t – test and F – test at the level of significance 5%. The results of this study indicate that: partially (1)FinancialLeverageMultiplier (FLM) has significant positive influence toward Return on Equity (ROE), (2) Total Assets Turnover (TATO) has positive significant influence toward Return on Equity (ROE), (3) Operating Profit Margin (OPM) has significant positive influence toward Return on Equity (ROE), (4) Interest Burden (IB) have significant positive influence toward Return on Equity (ROE), and (5) Tax Burden (TB) have a negative influence and insignificant toward Return on Equity.

Paper Citation

in Harvard Style

Endah Rahayu N., Cahaya Reski E., Sugiyanto. and Jatmiko. (2018). The Determinations of Return on Equity in the Food and Beverage Industry in Indonesia Stock Exchange.In Proceedings of the 1st International Conference on Recent Innovations - Volume 1: ICRI, ISBN 978-989-758-458-9, pages 2778-2787. DOI: 10.5220/0009952627782787

in Bibtex Style

@conference{icri18,
author={Nurjannah Endah Rahayu and Eva Cahaya Reski and Sugiyanto and Jatmiko},
title={The Determinations of Return on Equity in the Food and Beverage Industry in Indonesia Stock Exchange},
booktitle={Proceedings of the 1st International Conference on Recent Innovations - Volume 1: ICRI,},
year={2018},
pages={2778-2787},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009952627782787},
isbn={978-989-758-458-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Recent Innovations - Volume 1: ICRI,
TI - The Determinations of Return on Equity in the Food and Beverage Industry in Indonesia Stock Exchange
SN - 978-989-758-458-9
AU - Endah Rahayu N.
AU - Cahaya Reski E.
AU - Sugiyanto.
AU - Jatmiko.
PY - 2018
SP - 2778
EP - 2787
DO - 10.5220/0009952627782787