The Effect of Return on Assets, Debt to Equity Ratio, and Trading Volume Activity on Stock Returns of Infrastructure Companies

Abstract

Stock returns are one of the primary indicators used by investors to evaluate investment performance and support investment decision making. Financial performance and stock trading activity are considered important factors that may influence stock returns. This study aims to examine the effect of Return on Assets (ROA), Debt to Equity Ratio (DER), and Trading Volume Activity (TVA) on the stock returns of infrastructure sector companies listed on the Indonesia Stock Exchange during the 2020-2024 period. This research employed a quantitative approach using secondary data obtained from the annual reports of 14 companies selected through purposive sampling. The data were analyzed using panel data regression to examine the relationship between the independent variables and stock returns. The results indicate that Return on Assets, Debt to Equity Ratio, and Trading Volume Activity have no significant effect on stock returns, either partially or simultaneously. These findings indicate that stock returns in the infrastructure sector are influenced by factors beyond profitability, leverage, and trading activity.