Determining Stock Returns for the LQ45 Index on the Indonesia Stock Exchange

Authors

  • Muhammad Khalqi Universitas Tarumanagara
  • Sarwo Edy Handoyo Universitas Tarumanagara

DOI:

https://doi.org/10.59141/jrssem.v5i12.1601

Keywords:

Return on Equity, Price to Book Value, Debt to Equity Ratio, Market Capitalization, Stock Return

Abstract

For a country, capital markets play a crucial role in maintaining capital flows and economic activity. Therefore, investing in capital markets requires numerous considerations. This study aims to identify factors that influence returns. Shares of companies listed on the LQ45 Index on the Indonesia Stock Exchange from 2023 to 2025. The independent variable in this study is Return on Assets (ROA). Return on Equity (ROE), Price to Book Value (PBV), Debt to Equity Ratio (DER) and Market Capitalization, while the dependent variable is Return Stocks. This study uses panel data using a purposive sampling method that produces 90 samples. Panel data regression analysis used Fixed Effect Model (FEM). The results of this study indicate that Price to Book Value (PBV) has a significant and negative influence against Return Stocks and Market Capitalization has a significant and positive influence on Return Stocks. Meanwhile, Return on Equity (ROE) and Debt to Equity Ratio (DER) does not have a significant effect on Return Stocks. This study confirms that in the 2023-2025 period, investors in companies listed in the LQ45 Index prioritized company value over profitability and existing capital structure. These findings are expected to provide practical insights for investors and other stakeholders in the capital market.

Downloads

Published

2026-07-14

How to Cite

Khalqi, M., & Handoyo, S. E. (2026). Determining Stock Returns for the LQ45 Index on the Indonesia Stock Exchange. Journal Research of Social Science, Economics, and Management, 5(12), 13046–13060. https://doi.org/10.59141/jrssem.v5i12.1601

Issue

Vol. 5 No. 12 (2026): Journal Research of Social Science, Economics, and Management

Section

Articles

License

Copyright (c) 2026 Muhammad Khalqi, Sarwo Edy Handoyo

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  • Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  • Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.