An Analysis of Stock Returns in Consumer Product , Industry and Service Sector in the Market for Alternative Investment

Abstract

          The objective of this research is to (1) study the return of common stocks in the Market for Alternative Investment (2) to analyze the movement of the return of common stocks in consumer product, industry and service sector (3) to study the relationship between risk and returns of stocks in consumer product, industry and service sector (4) to specify factors that can explain the movement of returns for common stocks in consumer product, industry and service sector. The study uses closing price, price/earnings ratio, dividend yield, book/price ratio, share numbers, sales and beta of 12 listed company stocks in consumer product, industry and service sector in the Market for Alternative Investment by using data from 2015 to 2020 on a quarterly basis. The study uses econometric method by Panel Data Regression Analysis.
          The result of the research presents that (1) The return on common stocks in the Market for Alternative Investment is between -66.7% to 155.2% per year. (2) The return on the Market for Alternative Investment in consumer product, industry and service sector by overall has a movement in the form of an N-shape structure.(3) The Beta of the previous period has not relationship to the return on common stocks in consumer product, industry and service sector. (4) The factors that can be used to describe the change in return on common stock in consumer product, industry and service sector are book/price ratio, dividend yield, size of listed company. ( =0.173)