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http://dx.doi.org/10.13106/jafeb.2020.vol7.no12.919

Financial Ratio, Macro Economy, and Investment Risk on Sharia Stock Return  

WIDAGDO, Bambang (Faculty of Economics and Business, Universitas Muhammadiyah)
JIHADI, M. (Faculty of Economics and Business, Universitas Muhammadiyah)
BACHITAR, Yanuar (Sekolah Tinggi Ilmu Ekonomi Indonesia)
SAFITRI, Oky Ervina (Faculty of Economics and Business, Universitas Muhammadiyah)
SINGH, Sanju Kumar (Department of Management, Faculty of Economics and Business, Universitas Airlangga)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.12, 2020 , pp. 919-926 More about this Journal
Abstract
The purpose of this study is to analyze and test the effect of financial ratios and macroeconomics on Islamic stock returns listed in Jakarta Islamic Index (JII) other than to assess whether investment risk can be an intervening variable in this study. The type of research is explanatory in nature with a quantitative descriptive approach. The data used is based on secondary sources with a sample group of 29 companies listed on JII for a 5-year period ending 31 December 2018. The data obtained were analyzed by using SEM (Structural Equation Model) with AMOS (Analysis Moment of Structural) 21 program. The results of the study show that only financial ratios affect sharia stock returns and investment risk, while the mediation test found that investment risk does not act as a mediating variable between financial ratios and macroeconomics and Islamic stock return. These findings indicate that the role of the company's financial health is very important. Besides affecting the rate of return obtained, the company's financial health can also reflect the level of risk that investors will accept in the future. By improving financial performance properly, a company will have a positive impact on various interested parties and minimize the level of investor losses.
Keywords
Financial Ratios; Macroeconomics; Investment Risk; Sharia Stock Returns;
Citations & Related Records
Times Cited By KSCI : 6  (Citation Analysis)
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