The Influence of Roe and Firm Size on Company Value and The Impact on Share Returns in Companies in Pefindo25 Index

Abstract

This study aims to determine the effect of ROE and firm size on stock returns with firm value as an intervening variable in manufacturing subsector companies listed on the Indonesian stock exchange in 2016-2020 which are included in the PEFINDO25 Index. The population in this study are companies registered as manufacturing companies in the PEFINDO25 index which have gone through a delisting process carried out by researchers. This research was conducted by taking information on the company's financial data that has been published by the company or the Indonesian stock exchange on the website with quantitative methods. The sample in this study used a purposive sampling method where the companies that were sampled had to meet complete data requirements from 2016-2020. In analyzing the data of this study using the SPSS version 25 application. The results of this study obtained the results that the effect of ROE had a significant positive effect and positive firm size was not significant on the intervening variable. while the effect of ROE on stock returns has a significant positive effect, the Firm Size variable obtains positive results that are not significant and firm value has an insignificant negative effect.