This research is aimed for researchers, investors and other related party that has interest in the topic of current ratio and earning yield. Specifically, this research is designed to see if there is a significant relationship between current ratio and earning yield.In studying the relationship between two or more variables, we use a technique called regression analysis. The two variables we observed in this research are current ratio and earning yield from 2003 to 2012 (10 years). The objects for this purpose are PT. Astra International Tbk, PT. Indo Kordsa Tbk, PT. Gajah Tunggal Tbk, and PT. Indomobil Sukses Internasional Tbk. The three components we look at namely: r-square, p-value and t-stat suggest our decision not to reject the null hypothesis and thus we can conclude that current ratio does not have a significant relationship with earning yield on any given tries in this research.


Supervisor: Roy Sembel