To get the optimum return, investors need to know the information relating to the implementation of the investment. It can be predicted by the analysis of financial statements. The financial statements include information concerning the company's financial development. Variables and ratios that can be obtained from the financial statements including profit management, liquidity ratios, leverage ratios, activity ratios, profitability ratios, and firm size. This study aims to analyze the development of the above variables as well as the effect of each variable and its interaction with stock returns telecommunications company that went public on the Indonesian Stock Exchange (BEI). This is because the telecommunications company is closely connected with the additional capital to expand its business. Collecting data in this study using secondary data and methods of documentation and literature study. Population and sample in this research is the sixth telecommunications company listed on the Stock Exchange in 2010-2014. The method used is descriptive quantitative panel data regression analysis using a fixed effect, and hypothesis testing. The results show simultaneously all variables have a significant effect on stock returns. The coefficient of determination shows the dependent variable can be explained by the independent variables of 84.99%. Partially liquidity ratios, activity ratios, profitability ratios and firm size have a significant effect on stock returns. Meanwhile, earnings management and leverage ratio have no significant effect on stock returns.
Keywords. Earnings Management; Liquidity Ratio; Leverage Ratio; Activity Ratios; Profitability Ratios; Firm Size; Stock returns.