THE EFFECT OF RETURN ON ASSETS (ROA) AND RETURN ON EQUITY (ROE) ON STOCK PRICES IN FAST MOVING CONSUMER GOODS (FMCG) COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE IN THE 2020-2024 PERIOD

Abstract

This research seeks to examine influence of internal company factors including Return On Assets and Return On Equity on Stock Prices in Fast Moving Consumer Goods Companies listed on the Indonesia Stock Exchange for the period 2020-2024. Descriptive quantitative analysis is applied in this study to interpret the data. Information data is used from the Indonesia Stock Exchange (IDX) website transparently. The study uses panel data with a purposive sampling method involving 5 FMCG companies. Data analysis was carried out using panel data regression with the Fixed Effects Model (FEM) approach, with the help of EViews 12 software as an analysis tool. The results of the analysis show that partially, ROA has a significant effect on stock prices with a significance value of 0.0005 <0.05. ROE also shows a significant effect on stock prices with a significance value of 0.0288 <0.05. Simultaneously, ROA and ROE have a significant effect on stock prices with a significance value of 0.000001 <0.05. This is reinforced by the Adjusted R-Squared value of 82.32%. This research highlights the critical role of managing assets and capital effectively to enhance a company’s financial outcomes. The results offer actionable guidance for corporate managers, investors, and other stakeholders in formulating strategic plans regarding internal resource distribution to boost the company’s market value.