THE EFFECT OF FINANCIAL PERFORMANCE OF COMPANIES ON SHARE RETURN IN MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE YEAR 2014 -2016

:This study aims to determine the effect of parsiil and simultaneous price book value, price earnings ratio, earnings per share and dividend pay out ratio to stock returns on manufacturing companies listed in Indonesia Stock Exchange 2014-2016. The technique of determining the sample in this research is by using purposive sampling. There are several criteria that must be met by companies listed in Indonesia Stock Exchange to be a sample in this research. This research method uses multiple regression analysis which is used to know the influence of independent variable to dependent variable together and partially. The test t is used to test the influence of each price book value variable, price earning ratio, earnings per share and dividend pay out ratio) to stock return variables. Statistical test F aims to examine the influence of price book value variable, price earning ratio, earnings per share and dividend pay out ratio) together to stock return variables. Test R2 (Coefficient of determination) is done to find out how much influence the variable of price book value, price earning ratio, earnings per share and dividend pay out ratio to stock return variable. From result of t test known that price book value, earnings per share and dividend pay out ratio partially significant effect to stock return. Variable Price Earning Ratio partially no significant effect on stock return variables. From result of F test known that Price Book Value, Price Earning Ratio, Earning Per Share and Dividend Pay Out Ratio simultaneously have an effect on signifikan to variable Return of Shares In Manufacturing Company Listed In Indonesia Stock Exchange Year 2014 -2016.


I. INTRODUCTION
The purpose of the investor / company to invest is to earn a profit or return (return) large shares. The expected return of investors from an investment can be realized in the form of capital gains and dividends. Capital Gain is the amount of stock that can provide benefits for investors. Dividends represent a portion of the company's profits that the company distributes to its shareholders based on the number of shares held. Not all stock returns can be realized in the form of dividends because in a public company there is a policy called dividend policy.
In estimating the rate of return (rate of return) that will be obtained, investors first need to measure the company's financial performance. Financial performance will determine the high stock prices in the stock market. If the company's financial performance indicates a good prospect, then its shares will attract investors and the price increases. With rising stock prices of course stock returns received by investors also increased.
The analytical technique used to measure the company's financial performance in order to make long-term stock investment decisions is a fundamental analysis, which is an analytical technique that focuses on financial ratios.
From the analysis of financial ratios can be used to predict stock prices or returns in the capital market, including the financial condition of the company in the future.
According to Husnan (2009: 307) fundamental analysis predicts stock prices in the future by estimating the fundamental factors that affect future stock prices and connecting variables so that stock price estimates are known. Which in this study the author uses 5 variables, namely Price Book Value, Price Earning Ratio, Earning Per Share and Deviden Pay Out Ratio. These variables are the financial ratios to measure the company's financial performance in order to make long-term stock investment decisions.
Price to Book Value (PBV) is the ratio of stock price and book value per share of a company. This ratio illustrates how much the market appreciates the value of a company's stock book. The higher this ratio will give an idea that the higher stock price of the company, indicating the better performance of the company, so it can provide a better rate of return in the future. High price to book value reflects the level of prosperity of shareholders, where prosperity for shareholders is the main objective of the company.
Price Earning Ratio (PER) is the ratio used to measure the amount of money paid by the investor for each rupiah of corporate income. The high Price Earning Ratio (PER) of the company means the company's stock can provide a great return for investors, the greater the investor's confidence in the future of the company for the return of investment. Price Earning Ratio (PER) is used by investors to predict the company's ability to generate profit in the future. Investors can consider this ratio to sort out which stocks will benefit substantially in the future. PER denotes the relationship between the stock market price of the common stock and the earnings per share. A high level of profit signifies the growth of the company from the future. Companies with a high growth rate opportunity usually have a high PER, and vice versa companies with low growth have a small or low PER. PER is part of the market ratio where the viewpoint of this ratio is more from the investor's point of view and is also a measure to determine how the market assigns value or price to a company's stock.
Earning Per Share (EPS) represents the amount of profit earned for each common share. High EPS indicates that the company is able to provide a better level of welfare to shareholders. Thus EPS demonstrates the company's ability to earn profits and distribute profits to the shareholders.
Dividend payout ratio (DPR) is a comparison between dividends paid with the profits available to public shareholders (Hartono, 1998). Investors tend to like companies that have high levels of the House of Representatives because they are considered able to provide better benefits with better levels of certainty.
Given the company's financial performance analysis is needed in order to make investment decisions in stocks and given the high stock return of the company is very important of them will increase investor confidence to invest in a company hence the researcher interested to examine various factors affecting stock return of company with title: Effect of Financial Performance on Stock Return on Manufacturing

Stock Return
Stock return is one of the factors that encourage investors to invest and is a reward for the courage of investors to bear the risk of investment.
There are two types of returns: return realization (realized return) represents the return yng has occurred. This return is calculated using historical data. Return realization is important because it is used as a measure of the company's financial performance. Return realization is also useful in determining expected return and future risk. Return realization is measured by using total return, relative return, cumulative return and adjusted return. Medium average of return can be calculated based on arithmetic mean (mean arithmetc mean) and geometric mean (geometric mean). "The expected return is the expected return expected by investors in the future". Return of expectation can be calculated based on future expectation value, historical return value, expected return model. Jogiyanto Hartono (2008: 195) The component of stock return as proposed by Tendelilin (2010: 48), states that the stock return consists of: a. Capital gain (loss) Capital gain (loss) is an increase (decrease) in the price of a stock that can provide profit (loss) for investors. Capital gain is also the result obtained from the difference between the purchase price (buying rate) and the selling price (the selling rate). This means that if the buying rate is less than the selling rate, the investor is said to get capital gain, and vice versa if the buying rate is greater than the selling rate, the investor will get capital loss. Then capital gains can be written as follows: Capital Gain (Loss) = (Pt -Pt -1) / (Pt -1) Jogianto (2010)

Company Financial Statement Analysis
In general, there are many analytical techniques in making investment judgments, but the most widely used are fundamental analysis, technical analysis, economic analysis, and financial ratio analysis (Anoraga, 2008 (Ahmed and Nanda, 2004). Price to Book Value (PBV) is the ratio of stock price and book value per share of a company. This ratio illustrates how much the market appreciates the value of a company's stock book. The higher this ratio will give an idea that the higher stock prices show the company's better performance, so it can provide a better rate of return in the future. b. Price Earning Ratio Price Earning Ratio is one of the largest sizes in fundamental stock analysis and part of the valuation ratio to evaluate financial statements.
Price earning ratio is useful to see how the market appreciates the performance of a company's stock on the performance of the company as reflected in earnings per share. According to Brigham and Houston (2010: 150), Price Earning Ratio is: The ratio of price per share to earnings per share indicates the amount that investors are willing to pay for each reported profit dollar. A high PER indicates that investors are willing to pay a premium share price for the company. Based on the above opinion, the definition of PER referred to in this study is the ratio that compares the price of shares per share of common shares in circulation with earnings per share. c. Earning Per Share According to Brigham and Houston (2010: 240), earnings per share are the amount of revenue earned in a given period for each number of shares outstanding. This ratio is used to measure the percentage of earnings against stock prices. Earnings per share are the sum of the profits earned for each common share. High EPS indicates that the company is able to provide a better level of welfare to shareholders. Thus EPS demonstrates the company's ability to earn profits and distribute profits to the shareholders d. Dividend Payout Ratio (DPR) The dividend payout ratio determines the amount of profit that can be withheld as a source of funding. The greater the retained earnings the less the amount of profit allocated for dividend payments. According to Van Home et al (2009: 475), the ratio of dividend payout is the percentage of profit paid in dividend to the total profit available to shareholders. If the company cuts the dividend it will be considered a bad signal because it is considered the company needs funds. Therefore firms with high risks tend to have smaller DPRs so that they will not cut dividends if their profits fall. For high-risk firms, the probability of experiencing higher earnings

International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed -International Journal Vol-2, Issue-2, 2018 (IJEBAR) ISSN: 2614-1280, http://www.jurnal.stie-aas/ijebar decreases, as a result, investors tend to avoid stocks. This is different from the condition of companies that have high levels of DPR, investors tend to like this company because it is considered able to provide better benefits with a better degree of certainty.

B. Previous Research
The research will be conducted based on previous studies, namely: First, research conducted by Nesa Anisa (2015) which aims to know the factors that influence stock return consisting of return on assets (ROA), current ratio (CR), debt to equity ratio (DER), price earning ratio PER) and price to book value (PBV

b. Price Earning Ratio
Price earning ratio is the ratio that describes the comparison between stock price to earnings of company (Tandelilin, 2010 (Ghozali, 2005). Good data is normally distributed data. From the results of the Kolmogorof Smirnov normality test shown in Table 1 below shows the significance value of 1.1562> α = 0.005 then the data is normally distributed

b. Autocorrelation Test
The term autocorrelation can be defined as the correlation between members of a series of observations sequenced by Gujarati (2001). A good regression model is a regression independent of autocorrelation. To determine whether there is autocorrelation symptoms in the regression calculation of this study, it will be used durbin watsen test (DW TES). The DW value of this study shows the number of 2.122, where the number is between du = 1,7366 and 4du = 2,2634 it can be concluded there is no autocorrelation, then the model used in this study is feasible for basic analysis.

d. Multicolinearity Test
The purpose of multicollinearity test is to know whether the regression model found a correlation between independent variables (independent). A good model should not have a correlation between independent variables (no multicolonierity).
If the VIF value is less than 10, then there is no multicollinearity to the data being tested. Conversely, if the VIF value is greater than 10, it means multicollinearity to the data being tested.
From the results of multicollinearity test in table 4 VIF value of the four independent variables is smaller than 10 so it can be said that there is no multicollinearity model among these variables.
From the results of multicollinearity test obtained the tolerance value of the four independent variables greater than 0.1 so it can be said that there is no multicollinearity model among variables.

b. Individual Parameter Significant Test (Test -t Statistic)
The t test is used to know the partial significance of the independent variables: Price Book Value (X1), Price Earning Rati (X2), Earning Per Share (X3) and Deviden Payout Ratio (X4) to dependent variable: Return of company Y).
From table 5 is known magnitude influence of each independent variable to the dependent variable is as follows: than α (0,05). This means that Price Book Value in parsiil significant effect on stock return company.
2) Test the hypothesis Price Earning Ratio to stock return company. From result of calculation, significance t for Price Earning Ratio variable equal to 0,142 bigger than α (0,05). This means that Price Earning Ratio has no significant effect on stock return of company.
3) Test the Earning Per Share hypothesis on stock return of company From the calculation results obtained significance t for the variable Earning Per Share of 0.015 is smaller than α (0.05). It means that Earning Per Share has significant effect to stock return. 4) Test the hypothesis of Deviden Payout Ratio to stock return of company From the calculation results obtained significance t for the variable deviden Payout Ratio of 0.009 smaller than α (0.05). This means that the dividend payout ratio has a significant effect on stock return.

A. Conclusion
The conclusions of this study are as follows: 2. In order for the stock returns of manufacturing companies to increase, it is expected that manufacturing companies can improve their financial performance so as to provide more returns to investors. High stock returns are expected to increase investor confidence to invest in manufacturing companies.
3. For further researcher is suggested to add research variables that can affect stock return and add a longer time range so that later expected results will be more generalizable.