The Impact of Fundamental Factors and Inflation on Abnormal Return on Registered Service Company on The Indonesia Stock Exchange

Yusmita Kumala, Taufiq, Saadah Siddik

2018

Abstract

This research was conducted to examine the impact of fundamental factors and inflation on abnormal return on service companies listed on the IDX. The aim of this research is to test and analyze the effect of fundamental factors and inflation on abnormal return on service companies listed in the Indonesia Stock Exchange in 2011 up to 2015. Dependent variables in this study are abnormal returns, while independent variables in this study are return on asset, debt to equity ratio,current ratio, and inflation as a control variable.The population of this research is a service company listed on the Indonesia Stock Exchange (IDX) in 2011- 2015. Total sample of this research is 87 companies determined by purposive sampling. The data were analyzed using the classic assumption test, multicollinearity test, normality test, heteroscedasticity test, data analysis using multiple linear regression, determination coefficient test (R2), statistical test t and statistical f test, and test the control variable using covariance analysis.Partial test results (t test) indicate that return on assets, debt to equity ratio, current ratio have a significant positive effect on abnormal return. The test results together (f test) shows that return on assets, debt to equity ratio, current ratio together have an effect on abnormal return. While the results based on the results of covariance analysis, return on assets, debt to equity ratio, current ratio influenced by inflation control variables together become insignificant to abnormal returns.

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Paper Citation


in Harvard Style

Kumala Y., Taufiq. and Siddik S. (2018). The Impact of Fundamental Factors and Inflation on Abnormal Return on Registered Service Company on The Indonesia Stock Exchange.In Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC, ISBN 978-989-758-387-2, pages 319-329. DOI: 10.5220/0008439803190329


in Bibtex Style

@conference{seabc18,
author={Yusmita Kumala and Taufiq and Saadah Siddik},
title={The Impact of Fundamental Factors and Inflation on Abnormal Return on Registered Service Company on The Indonesia Stock Exchange},
booktitle={Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,},
year={2018},
pages={319-329},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008439803190329},
isbn={978-989-758-387-2},
}


in EndNote Style

TY - CONF

JO - Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,
TI - The Impact of Fundamental Factors and Inflation on Abnormal Return on Registered Service Company on The Indonesia Stock Exchange
SN - 978-989-758-387-2
AU - Kumala Y.
AU - Taufiq.
AU - Siddik S.
PY - 2018
SP - 319
EP - 329
DO - 10.5220/0008439803190329