Nidia Wulansari
Universitas Negeri Padang, Department of Hospitality Management email: nidia_wulansari@yahoo.com
ABSTRACT
Every investor surely wants to gain high return from their investment. For gaining high return, investors need enough information. The Information can be obtained from financial report (internal factors) and macroeconomic (external factors). In this research, there will be some explanations about the effect of debt to equity ratio (DER), return on asset (ROA), inflation rate and exchange rate toward stock return of textile industry listed in Indonesia Stock Exchange (IDX). The textile industry have been selected because according to the ministry of industry, textiles industry is an investment priority. Sampling method used for this research was purposive sampling. Sample of this research consists of seven textile industries listed in Indonesia Stock Exchange for the period of 2010 – 2015. Data analysis tools was using the classical assumption test and multiple linear regression. The result of this research show that ROA and exchange rate were positive and significant effect toward stock return of textile industry. DER have positive and no significant effect toward Stock return of textile industry. Inflation rate have negative and no significant effect toward stock return of textile industry. Based on the explanation above, ROA and exchange rate should be considered by the investors who want to invest their money at stocks textile industry.
Keywords: stock return, debt to equity ratio (DER), return on asset (ROA), inflation rate, exchange rate