The Effect Of Exchange Rate Towards On Stock Returns Mediated By Fundamental Factors (Study On Stocks Of Telecommunications Sub-Sector Companies Listed On The Indonesia Stock Exchange)
DOI:
https://doi.org/10.59141/jrssem.v3i3.576Keywords:
Return On Assets, Debt Equity Ratio, Earnings Per Share, Exchange Rate, Stock ReturnAbstract
This study aims to analyze the effect of the exchange rate on stock returns (SR) mediated by fundamental factors, which are represented by return on assets (ROA), debt equity ratio (DER) and earnings per share (EPS), in listed telecommunications sub-sector industrial companies. on the Indonesian Stock Exchange for the 2015-2022 period. This thesis is also to see how financial signals can influence investor perceptions and their impact on SR. The data used is secondary data obtained from the Indonesia Stock Exchange for telecommunications sub-sector companies for the period 2015-2022 and Bank Indonesia data for the IDR-USD exchange rate. This study uses the exchange rate as the dependent variable, stock returns as the independent variable, and ROA, DER and EPS as mediating variables. The analysis technique using the Structural Equation Model (SEM) approach using Partial Least Square (PLS) software, namely Smart PLS software. The results of the study proved that ROA had a not significant positive effect on SR, DER had a significant positive effect on SR, EPS had a significant positive effect on SR, ER had an insignificant positive effect on ROA, ER had an insignificant negative effect on DER, ER had an insignificant negative effect on EPS and ER has a significant negative effect on SR. Furthermore, ER has no significant positive effect on SR mediated by ROA, ER has no significant negative effect on SR mediated by DER, ER has no significant negative effect on SR mediated by EPS.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Aria Mandala Putra Ginting, Kurnadi Gularso
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.