EARNINGS PER SHARE, DEBT TO EQUITY RATIO, AND RETURN ON EQUITY EFFECT ON STOCK PRICES IN PHARMACEUTICAL COMPANIES FEATURED IN INDONESIA STOCK EXCHANGE IN 2016-2020
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Keywords

Earning per share
Debt to equity ratio
Return on equity
Stock Price

How to Cite

, F., Nurhalimah, W., Mustika, T., Sukmawati, K., Sofia, H. N., & Rachman, A. A. (2022). EARNINGS PER SHARE, DEBT TO EQUITY RATIO, AND RETURN ON EQUITY EFFECT ON STOCK PRICES IN PHARMACEUTICAL COMPANIES FEATURED IN INDONESIA STOCK EXCHANGE IN 2016-2020. CENTRAL ASIA AND THE CAUCASUS, 23(1), 4561-4571. https://ca-c.org/CAC/index.php/cac/article/view/450

Plaudit

Abstract

The aims of this study are to identify the impact of earnings per share, debt-to- equity ratio, and return on equity on stock prices in pharmaceutical sub-sector corporations featured in indonesia Stock Exchange Exchange throughout 2016 and 2020. Earnings per share, debt-to-equity ratio, and return on equity were the independent variables in this project.
This study employed a cross-sectional explanatory method. The types of investigation examined in this study were descriptive and experimental investigation. The data for this study came from 11 pharmaceutical sub-sector companies in Indonesia that were featured on the Indonesia Stock Exchange between 2016 - 2020.
This research subject is reduced from eleven to seven companies as the sample of this research by using the non-probability sampling approach and the purposive sampling approach. This study used data panel regression with a significance level of 5% in the Eviews10 program to analyze the data.
According to the data, earnings per share and return on equity have a positive and substantial influence on stock prices. However, during 2016 until 2020, the debt to equity ratio has no substantial influence on stock price for pharmaceutical sub- sector corporations featured on the Indonesia Stock Exchange. Thus, the contribution of earnings per share, debt-to-equity ratio, and return on equity on stock price is 81.22 percent, also with remaining 18.78 percent explained by components outside the model assessment.

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