Analysis Of Factors Affecting Stock Income In Property And Real Estate Sector Companies Listed On The Indonesia Stock Exchange For The 2014-2018 Period

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Analysis of Factors Affecting Stock Income in the Property and Real Estate Sector in Indonesia (2014-2018)

The property and real estate sector is a significant contributor to the Indonesian economy, with numerous companies listed on the Indonesia Stock Exchange (IDX). As a result, understanding the factors that influence stock income in this sector is crucial for investors, policymakers, and company stakeholders. This study aims to analyze the factors affecting stock income in property and real estate sector companies listed on the IDX for the 2014-2018 period.

Background and Significance

The property and real estate sector is a complex and dynamic industry, influenced by various factors such as economic conditions, government policies, and market trends. The sector's performance can have a significant impact on the overall economy, making it essential to understand the factors that drive stock income in this sector. This study focuses on the analysis of four key financial variables: Debt to Equity Ratio (DER), Net Profit Margin (NPM), Total Asset Turnover (TATTOO), and Earning Per Share (EPS).

Methodology

This study uses a panel data analysis technique, applying the Fixed Effect Model (FEM) method to analyze the data. The data used in this study are secondary data sourced from the financial statements of property and real estate sector companies listed on the IDX. The analysis covers the 2014-2018 period, providing a comprehensive understanding of the factors affecting stock income in this sector.

Results

The results of the analysis show that simultaneously, DER, NPM, TATTOO, and EPS variables have a significant influence on stock returns. However, when analyzed separately, there are differences in the influence of each variable on stock returns. The DER variable shows a positive effect on stock returns but has no significant effect. In contrast, NPM and TATTOO show a significant negative effect on stock returns, while the EPS variable has a positive and significant effect.

Deeper Analysis

Debt to Equity Ratio (DER)

The DER is a measure of the extent to which a company is financed by debt compared to equity. Although the results show a positive effect on stock returns, there was no significant effect found. This may be due to the trust that property companies have a good potential for debt recovery. Investors may not prioritize financing factors in these companies when making their investment decisions.

Net Profit Margin (NPM)

The NPM indicates how efficient a company is in generating profits from income. The significant negative influence of NPM on stock returns shows that although companies are able to generate profits, external factors such as rigorous competition in the property sector can encourage earnings margins to shrink increasingly, leading to a negative impact on investor perceptions.

Total Asset Turnover (TATTOO)

The TATTOO is a ratio that shows how well a company uses its assets to generate income. In this context, the negative and significant influence of TATTOO can be interpreted as indicating that although companies have many assets, efficiency in the use of these assets is still low. This shows the need for more effective asset management strategies to increase company value in the eyes of investors.

Earning Per Share (EPS)

It was found that EPS had a positive and significant influence on stock returns, indicating that investors tend to be more confident in companies that show good profit per share growth. In other words, an increase in EPS can encourage investment interest and increase the company's stock prices.

Conclusion

The analysis of factors that influence stock income in the property and real estate sector provides valuable insight for investors and other stakeholders. Understanding the effect of financial variables such as DER, NPM, TATTOO, and EPS is essential in making investment decisions. Further research needs to be done by considering external factors that can affect investor perceptions in addition to financial data, such as macroeconomic conditions and government policies in the property sector. This will enable companies to formulate more appropriate strategies in increasing the value of their shares in the future.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Investors should prioritize companies with high EPS: Investors should focus on companies that show good profit per share growth, as this can encourage investment interest and increase the company's stock prices.
  2. Companies should improve asset management: Companies should implement more effective asset management strategies to increase efficiency in the use of their assets, leading to higher stock returns.
  3. Government policies should support the property sector: Government policies should be designed to support the property sector, reducing competition and increasing investor confidence.
  4. Further research should be conducted: Further research should be conducted to analyze the impact of external factors on investor perceptions and stock returns in the property and real estate sector.

By considering these recommendations, investors, policymakers, and company stakeholders can make more informed decisions and contribute to the growth and development of the property and real estate sector in Indonesia.
Frequently Asked Questions (FAQs) on Analysis of Factors Affecting Stock Income in the Property and Real Estate Sector in Indonesia (2014-2018)

This article aims to provide answers to frequently asked questions related to the analysis of factors affecting stock income in the property and real estate sector in Indonesia for the 2014-2018 period.

Q: What is the significance of this study?

A: This study is significant because it provides valuable insight into the factors that influence stock income in the property and real estate sector in Indonesia. Understanding these factors is crucial for investors, policymakers, and company stakeholders to make informed decisions.

Q: What are the key financial variables analyzed in this study?

A: The key financial variables analyzed in this study are Debt to Equity Ratio (DER), Net Profit Margin (NPM), Total Asset Turnover (TATTOO), and Earning Per Share (EPS).

Q: What is the methodology used in this study?

A: The methodology used in this study is a panel data analysis technique, applying the Fixed Effect Model (FEM) method to analyze the data.

Q: What are the results of the analysis?

A: The results of the analysis show that simultaneously, DER, NPM, TATTOO, and EPS variables have a significant influence on stock returns. However, when analyzed separately, there are differences in the influence of each variable on stock returns.

Q: What is the significance of the Debt to Equity Ratio (DER) variable?

A: The DER variable shows a positive effect on stock returns but has no significant effect. This may be due to the trust that property companies have a good potential for debt recovery.

Q: What is the significance of the Net Profit Margin (NPM) variable?

A: The NPM variable indicates how efficient a company is in generating profits from income. The significant negative influence of NPM on stock returns shows that although companies are able to generate profits, external factors such as rigorous competition in the property sector can encourage earnings margins to shrink increasingly.

Q: What is the significance of the Total Asset Turnover (TATTOO) variable?

A: The TATTOO variable is a ratio that shows how well a company uses its assets to generate income. In this context, the negative and significant influence of TATTOO can be interpreted as indicating that although companies have many assets, efficiency in the use of these assets is still low.

Q: What is the significance of the Earning Per Share (EPS) variable?

A: The EPS variable has a positive and significant influence on stock returns, indicating that investors tend to be more confident in companies that show good profit per share growth.

Q: What are the implications of this study?

A: The implications of this study are that investors should prioritize companies with high EPS, companies should improve asset management, government policies should support the property sector, and further research should be conducted to analyze the impact of external factors on investor perceptions and stock returns in the property and real estate sector.

Q: What are the limitations of this study?

A: The limitations of this study are that it only analyzes the 2014-2018 period, and it does not consider external factors such as macroeconomic conditions and government policies in the property sector.

Q: What are the future research directions?

A: Future research directions include analyzing the impact of external factors on investor perceptions and stock returns in the property and real estate sector, and conducting a more comprehensive analysis of the property and real estate sector in Indonesia.

By answering these frequently asked questions, this article aims to provide a better understanding of the analysis of factors affecting stock income in the property and real estate sector in Indonesia for the 2014-2018 period.