The Effect of Macroeconomic Indicators on Stock Return through Return on Asset (RoA) in Banking Companies Listed in Lq45 from 2008-2018

Stock return is the result for an investor for their ownership of a company. In investing, an investor aims to maximize the return by considering the investment risk factors. There are six banks listed in LQ 45 from 2008-2018, selected using the purposive sampling method. Secondary data used were financial statements of sample banks obtained from the IDX and company websites. Meanwhile, data on inflation, Rupiah exchange rate, and GDP were obtained from the Statistics Indonesia and Bank of Indonesia. The path analysis was applied to test the study hypotheses. From the analysis results, it can be concluded that simultaneously and partially, interest rate, inflation, exchange rate, and GPD significantly affect stock return through financial performance. Partially, financial performance (return on asset) positively affects the stock return.