The Effect of Return on Equity (ROE) and Return on Investment (ROI) on Trading Volume

摘要

Public interest about stocks and bonds increasingly growing, it's because the wider public curiosity about the conditions in the capital market. Indicator in profitability ratio is Return on Equity and Return on Investment. The reason why the ROE and ROI selected as measure is due in ROE and ROI using net income as a benchmark in measuring profitability. ROI and ROE affect the volume of trade, even though it gives weak results. Trading volume was influenced by other factors beyond profitability ratio. Investors do not just look at the profitability factor in this case is represented by the ROE and ROI.