Research in the property sector is said to be important because the need for boards is one of the basic human needs.

This has resulted in doubts and delays in investing in the private sector and eroding national economic resilience (Pratiwi, 2018). There is also a depreciation in the rupiah and an increase in fuel prices, which has caused uncertainty and rising inflation. The decline in several aspects of financial statements experienced by property companies due to the impact of the existing global financial crisis. However, property companies listed on the IDX still make the best contribution to consumers. This is caused by various factors that occur.

This resulted in a lot of impacts experienced by the company. At present, the profits earned by property companies listed on the Indonesia Stock Exchange (IDX) are experiencing a decline in aspects of their financial statements. As the economy grows, the property and real estate industries also develop. A company, however, may evaluate the type and level of risk before it is adopted as a necessary condition in business operations (Nugraha et al., 2019). For that, every company must be more leverage and always be more careful in running the company to obtain the profit (Thaib et al., 2020).

Return in 18 Indonesia’s property and real estate companies.Įconomic development at this time resulted in increasingly fierce business competition. (DER) and Return on Equity (ROE) have direct and indirect effects on Stock Based on th ese findings, we concluded that Debt to Equity Ratio Of Debt to Equity Ratio (DER ) and and Return on Equity (ROE) on stock returns. Sobel test revealed Dividend Payout ratio (DPR) can be mediate the relationship

Our analysis results found that Debt to Equity Ratio (DER), Return onĮquity (ROE), and Dividend Payout Ratio (DPR) have a positive and significantĪffect on stock returns, both partially nor jointly. We applied multiple linear regression model using SPSS and the Sobel We collect ed annual data for eighteen property and real estateĬompanies in Indonesia from the Indonesia Stock Exchange over the period ofĢ014-2018. Variable on the property and real estate companies in Indonesia. Return on Equity on stock returns with dividend policy as an intervening Return on Net Worth is not used for this purpose.The aims of this study are to investigate the effect of Debt to Equity Ratio and Return on Equity is used to compare the type of companies in a field to see which are doing better or worse in different areas.Return on Net Worth is more beneficial for the management of the company. Investors or shareholders are more interested in Return on Equity as it is their return on money.Return on Net Worth is more extensive than Return on Equity as it has more sources of money and debt than Return on Equity.Return on Net Worth has more features as it comprises more company materials, like debentures and securities, while Return on Equity is only used to calculate the shareholders’ equity.Return on Net worth can be on anything a company has, meaning loans, debentures, or securities. Return on Equity is different as it is made only on the money that the company’s equity shareholders invest.Main Differences Between Return on Equity and Return on Net Worth To get out of this situation, the firm should pay out all its debt and decrease the use of any expensive extra expenses that they are making.

If the return is negative, the company will not be able to raise funds from the market, which is a significant loss for any business. ThereThe shares can be divided into three categories: standard, preferred and retained.Ī Higher Ratio of RoNW indicates that a company is efficiently utilising the shareholders’ money efficiently. Equity shareholders are the people who are the owners of the company. Return on Equity, or RoE, is a company’s earnings or profits with the invested money from the equity shareholders. Formula another name N/A Return on Capital What is Return on Equity? The ratio is made from the investors’ perspective, not the company’s. Disadvantage The ratio can be manipulated. Gets the right amount of Net Worth and tells whether the company is doing well. Advantage Help in planning for future investment. It indicates the creditworthiness of the company. Usage It is mainly used to compare the performance of companies related to the same field. They are used to calculate the profit percentage from the company’s net income and net worth. Comparison Table Parameters of Comparison Return on Equity Return on Net Worth Abbreviation RoE RONW Definition Used to measure the profitability of the business about Equity. Net Worth includes shareholders’ Equity, Reserves, preference share capital, securities, etc.

Return on equity