The Effect of ROE and RETE on Stock Returns of Coal Companies Listed on the Indonesia Stock Exchange for the 2022–2024 Period

Abstract

This study seeks to explore how the Return on Equity Ratio and the Retained Earnings to Total Equity Ratio influence stock returns among coal energy sector companies listed on the Indonesia Stock Exchange over the 2022-2024 period. A quantitative research design was applied, utilizing secondary data obtained from published financial statements and historical stock price records. The sample consisted of 75 observations, determined through a purposive sampling technique in line with specific criteria established for this research. To analyze the data, panel data regression was conducted with the support of EViews-12. This method enabled the study to evaluate both the individual (partial) and joint (simultaneous) effects of the independent variables on stock returns during the observation period. The results of the study indicate that ROE partially has a significant effect on stock returns, whereas RETE partially does not have a significant effect on stock returns. However, simultaneously, ROE and RETE are proven to have a significant effect on stock returns.