Analysis of the Effect of Profitability Ratio, Solvency Ratio, Market Value Ratio, Inflation, and Exchange Rate on Stock Return (Case Study of the Agriculture Sector on the IDX from 2016 to 2019)

Muhammad Iqbal Saddam Pratama, Tony Seno Aji, Andre Dwijanto Witjaksono


The agriculture sector plays a significant function in the Indonesian economy, primarily as a food-producing sector, generating jobs for employees in this area, and one of the sources of foreign exchange for the country. This study aims to analyze the influence of Return on Equity (ROE), Debt to Equity Ratio (DER), Price Book to Value (PBV), inflation and Exchange Rate (ER) on stock returns. The population of this research are companies in the agriculture industry. The sampling approach employed in this research is purposive sampling method. This study analysis tool employs Partial Least Square. The results of this study reveal that inflation and Exchange Rate (ER) have a negative effect on stock returns, whereas Return on Equity (ROE), Debt to Equity Ratio (DER), Price Book to Value (PBV) has no effect on stock returns. For investors, those who wish to invest in the agriculture industry must look at Indonesia's macroeconomic conditions, specifically inflation and the exchange rate.


Return on Equity (ROE); Debt to Equity Ratio (DER); Price Book to Value (PBV); Inflation; Exchange Rate (ER); Stock Returns

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