The Effect of Interest Rates, Growth of Gross Domestic Product and Profitability on Stock Returns of Property Companies Listed in Indonesia stock exchange

Abstract

This study takes the title Effect of Interest Rates, Growth of Gross Domestic Product and Profitability on Stock Returns of Property Companies Listed on the Indonesia Stock Exchange. The formulation of the problem in this study is how the influence of Interest Rates, Gross Domestic Product Growth and Profitability on stock returns of property sector companies either simultaneously or partially. The purpose of this study is to empirically prove the effect of interest rates, growth of gross domestic product and profitability on stock returns of property sector companies simultaneously or partially. The population of this study is all property sector companies listed on the Indonesia Stock Exchange for the 2011-2019 observation period as many as 79 companies. The method of determining the sample using purposive sampling technique is to obtain 35 companies as a sample with data on economic growth, monetary policy, and financial statements for 9 years, the data obtained is 315 data which will be processed using SPSS 17.0 For Windows. The data analysis technique used is the classical assumption test, multiple regression analysis, F-test, t-test, and analysis of determination. From the results of the analysis, it was found that the interest rate had an insignificant negative effect on stock returns. Gross Domestic Product growth has a significant positive effect on stock returns. Profitability has a significant positive effect on stock returns monetary policy. Profitability has a significant positive effect on stock returns and determination analysis. From the results of the analysis, it was found that the interest rate had no significant negative effect on stock returns. Gross Domestic Product growth has a significant positive effect on stock returns. Profitability has a significant positive effect on stock returns.