ANALYSIS OF CRUDE PALM OIL (CPO) PRODUCTION VOLUME AND PRICE ON PROFITABILITYAND ITS IMPACT ON STOCK RETURNS

  • Kurniawan Siregar Student of Magister Management, MercuBuana University (UMB), Jakarta Indonesia
  • Afriapollo Syafarudin Lecture of Magister Management, MercuBuana University (UMB), Jakarta Indonesia
Keywords: CPO Production, CPO Price, Profitability, Return on Assets, Stock Return, Capital Gain

Abstract

This study aims to examine and analyze the effect of production volume and crude palm oil (CPO) prices on profitability (proxied by return on assets, ROA) and its impact on stock returns (proxied by capital gains) in plantation industry sector companies listed on the Indonesia Stock Exchange (BEI) 2013 - 2017. The sampling method used was purposive sampling. From the population of 18 plantation industry companies, 12 companies met the criteria to be sampled. The type of data used is panel data, which is collected by documentation techniques. The analytical method used in this study is multiple linear regression using Eviews version 9.0 software. The results showed that CPO production had a positive and not significant effect on ROA. The price of CPO has a negative and not significant effect on ROA. ROA has a positive and not significant effect on stock returns. CPO production has a negative and not significant effect on stock returns. CPO prices have a positive and not significant effect on stock returns. Simultaneously CPO production and prices have no significant effect on ROA and stock returns. CPO production and CPO prices simultaneously contribute more to stock returns than through ROA as an intervening variable.

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Published
2019-07-31
How to Cite
Siregar, K., & Syafarudin, A. (2019). ANALYSIS OF CRUDE PALM OIL (CPO) PRODUCTION VOLUME AND PRICE ON PROFITABILITYAND ITS IMPACT ON STOCK RETURNS . International Journal of Engineering Technologies and Management Research, 6(7), 87-100. https://doi.org/10.29121/ijetmr.v6.i7.2019.419