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Analysis of the Effect of Return On Asset and Sales Growth on Stock Return at BUMN in Indonesia

Year: 2025

Type: article

Abstract: This study aims to analyze the effect of Return on Asset (ROA) and sales growth (Sales Growth) on stock returns in state-owned companies listed in Indonesia. This study uses quantitative methods using multiple linear regression analysis to test the hypothesis. The results showed that ROA has a significant positive effect on stock return (SR), indicating that the efficient use of assets has a major impact on market appreciation. In contrast, Sales Growth (SG) shows a negative influence on SR, reflecting that sales growth does not always improve stock performance, especially if it is not accompanied by operational efficiency. That profitability is preferred by investors compared to sales growth, and provides recommendations for company management to focus on optimizing profitability and efficiency in the face of external factors such as a pandemic.

Source: International Journal of Economics Business and Innovation Research

DOI: 10.63922/ijebir.v4i03.1772

Authors: Yuni Fatmala, Eni Indriani

Institution: University of Mataram

Language: English

Topic: Financial Analysis and Corporate Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4410439740

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