Arifin (2002) states that "The higher the ROA the higher the company's ability to generate profits, the
higher the company's income would make investors interested in the stock value". This is in line with the
opinions expressed by Rowland Bismark Pasaribu Fernando (2008) in the Journal of Economics and Business
which states that the "fundamental factors that are often used to predict the stock price or stock returns are
financial ratios and market ratios. Financial ratios serves to predict stock prices, among others, return on assets
(ROA). This framework can be described in the frame of the picture as follows: