The Impact of Price and Market Value Added Earnings Ratio for Stock Returns in Companies in Subsectors Civil engineering and heavy construction listed between 2020 and 2024 on the Indonesia Stock Exchange

Abstract

This study aims to test and assess the partial and simultaneous effects of Market Value Added (MVA) and Price Earning Ratio (PER) on stock returns in sub-sector companies Heavy Construction & Civil Engineering listed on the Indonesia Stock Exchange for the 2020–2024 period. The study employed a quantitative methodology using secondary data from stock prices and financial reports. Purposive sampling was used to determine the sample, yielding a total of 35 observations from 7 companies. Descriptive statistics, classical assumption tests, panel data regression, correlation analysis, coefficient of determination, partial tests (t-test), and simultaneous tests (F-test) were among the data analysis techniques used. The results showed that, to some extent, MVA had a favorable and significant impact on stock returns. The findings indicated that while PER had no significant effect with a probability value of 0.8770, MVA had a partial positive and significant effect on stock returns with a probability value of 0.0000. At the same time, both MVA and PER had a significant effect on stock returns with a mark probability F of 0.000000 (<0.05). The equation regression obtained is Y = -1.036407 + 7.51E-13X1 + 0.000283X2 + e. Coefficient value correlation of 0.9651 shows very strong relationship between variables independent and dependent . Coefficient determination (R²) of 0.927213 shows that 92.72% of the variation in Stock Returns can be explained by MVA and PER, while 7.28% is influenced by other external factors study .