THE INFLUENCE OF PRICE EARNING RATIO AND DEBT TO EQUITY RATIO ON STOCK RETURN (EMPIRICAL STUDY OF BANKING COMPANIES ON THE ISE PERIOD 2016-2018)

Abstract

This research is motivated by a decline in the value of stock returns in several banks listed on the
ISE. This study aims to determine how the effect of PER and DER on stock returns on banks listed
on the ISE in the 2016-2018 period. The research method used in this research is descriptive and
explanatory methods. The population in this study is the banks listed on the Indonesia Stock
Exchange for the period of 2016-2018, amounting to 41 companies, with a total sample of 31
companies. Analysis of the data used is panel data regression analysis using Eviews 9.The results
showed that PER and DER affect stock returns. In addition, the magnitude of the effect of PER and
DER on stock returns of 71.5%.