This research (thesis) investigates the effect of financial ratio (liquidity ratio,
efficiency ratio, leverage ratio, profitability ratio and valuation ratio) on stock price
return of LQ45 companies. The objects of this research are LQ45 companies which
are listed in Indonesia Stock Exchange (IDX) from period 2012 until 2016. There are
several criteria to select the sample from LQ45 stocks. As a result, out of 79
companies, 20 companies are chosen to be used in this research. There are 11
independent variables used to perform the regression analysis against the dependent
variable, which is the stock price return.
The result of this research explains that only profitability ratio (ROA) and
valuation ratio (D/Y) that give significant impact on the stock price return of LQ45
stocks for period 2012 until 2016. Meanwhile, the liquidity ratio, efficiency ratio and
leverage ratio has negative impact, but not statistically significant on the stock price
return of LQ45 stocks for period 2012 until 2016. The result of this research will help
the reader to analyze only the financial ratios that give significant impact to the stock
price return of LQ45 stocks.


Supervisor: Roy Sembel