The role of this research paper is to explore and highlight how internal aspects of firms and the external environment in economics affect the retail and whole sale sectors in the country. To effectively do this, specific internal economics characteristics have been used including financial performance and risk indicators. On the other hand, the macroeconomic aspect is variables to stock returns; this is in consideration of all the retail and whole sale firms that were listed in the stock exchange between the years 2008 and 2015. The panel regression is used and comprises two models regarding the internal and macroeconomics aspects utilizing the Chow Test and Hausman Test. The application of panel regression leads to the results which imply that there is a significant relationship between the returns in firms and price to sales ratio, debt ratio, return on assets, firm size, beta, and rate of exchange in the stock market. These results are based on tabular comparison of the aspects in terms of their statistical values of coefficients, t-Statistics and probability values in the panel regression. The discussion further asserts the existence of strong relationship identified in the results and further proves a negligible relationship between the internal and macro-economic aspects in the context of their environments. The conclusion finally sums all the findings suggesting that the financial well being of retail and wholesale firms in Indonesia rely heavily on the identified aspects.

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