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
Keywords:
Earning per share, Debt to equity ratio, Return on equity, Stock PriceAbstract
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.
Downloads
References
Agus, S., Financial Management Theory and Applications. Edition 4. Yogyakarta: BPFE, 2010.
Samsul, M., Capital Markets and Portfolio Management Edition 2. Erlangga. Jakarta, 2015.
Hassan, N., et al., Coping Strategies in Hepatitis C Patients During the Course of Antiviral Treatment of HCV. PalArch's Journal of Vertebrate Palaeontology, 2021. 18(1): p. 91-104.
Hassan, Z.A. and Q.I.N. Al-Hussuna, DIRECT VERBAL VERBS IN THE LETTERS OF
SORROWS BY AL-RAFI'I: A PRAGMATIC STUDY. PalArch's Journal of Archaeology of Egypt/Egyptology, 2021. 18(18): p. 423-436.
Dianto, D. and T.L. Sarumpaet, THE INFLUENCE OF FUNDAMENTAL FACTORS ON STOCK PRICES. Journal of Business Accounting and Economics, 2019. 5(2): p. 1443-1456.DOI: https://doi.org/10.33197/jabe.vol5.iss2.2019.314.
Sharif, T., H. Purohit, and R. Pillai, Analysis of factors affecting share prices: The case of Bahrain stock exchange. International Journal of Economics and Finance, 2015. 7(3): p. 207-216.DOI: https://doi.org/10.5539/ijef.v7n3p207.
Firdaus, R. and L.S. Wondabio. Financial Report for Micro, Small, and Medium Enterprise According to Financial Accounting Standards: Case Study Rafita Cake. Atlantis Press.
Hornung, J.J., Comments on “Ornithocheirus hilsensis” Koken, 1883–One of the earliest dinosaur discoveries in Germany. PalArch's Journal of Vertebrate Palaeontology, 2020. 17(1): p. 1-12.
Halpern, P., M. Trebilcock, and S. Turnbull, An economic analysis of limited liability in corporation law. The University of Toronto Law Journal, 1980. 30(2): p. 117-150.DOI: https://doi.org/10.2307/825483.
Marjohan, M., The Effect Analysis of Liquidity, Solvency on Profitability and Its Impact to the Company Value at PT KS, Tbk. Journal BIRCI, 2020. 3(4): p. 3845-3860.DOI: https://doi.org/10.33258/birci.v3i4.1451.
Sudirman, S., K. Kamaruddin, and B.T. Possumah, The Influence of Net Profit Margin, Debt to Equity Ratio, Return on Equity, and Earning per Share on the Share Prices of Consumer Goods Industry Companies in Indonesia. International Journal of Advanced Science and Technology, 2020. 29(7): p. 13428-13440.
Holley, C.L. and J. Early, Are Financial Statements Easy to Read? Evaluating the Readability of Corporate Annual Reports. Woman CPA, 1980. 42(2): p. 3.
Kareem, S.M.A. and W.A. Thabet, THE EFFECT OF THE COLLAPSE OF THE TSARDOM EMPIRE AND THE ATTITUDE OF THE TEMPORAL RUSSIAN BOURGEOIS GOVERNMENT TOWARDS THE POLISH CASE (FEBRUARY-NOVEMBER, 1917. PalArch's Journal of
Archaeology of Egypt/Egyptology, 2021. 18(18): p. 414-422.
Arum, R.M., Effect of Earning Per Share on Stock Price with Dividend Per Share as Moderation Variable. INCOME: Innovation of Economics and Management, 2021. 1(1): p. 1-5.
Octavia, E., Effect of Fundamental Factors on Stock Prices of Food and Beverage Sector in Indonesia Stock Exchange 2003-2007. Journal of Accounting Vol. 10, No. 2, 181-212. 2010.
Menike, M. and U.S. Prabath, The impact of accounting variables on stock price: evidence from the Colombo Stock Exchange, Sri Lanka. International Journal of Business and Management, 2014. 9(5): p. 125.DOI: https://doi.org/10.5539/ijbm.v9n5p125.
Alam, S., M.R. Miah, and M.A. Karim, Analysis on factors that affect stock prices: A study on listed cement companies at Dhaka stock exchange. Research Journal of Finance and Accounting, 2016. 7(18): p. 93-113.
Watung, R., & Illat, The Effect of Return on Assets (ROA), Net Profit Margin (NPM), and Earnings per share (EPS) on Stock Prices in Banking Companies on the Indonesia Stock Exchange. EMBA Journal Vol. No. 2, 518-529. 2016.
Egam, G., V. Ilat, and Pangarepan, Effect of Return on Assets, Return on Equity (ROE), Net Profit Margin (NPM), and Earnings per share (EPS) on Stock Prices incorporated in the LQ45 index on the Indonesia Stock Exchange. EMBA Journal Vol. 5, No. 1, 105-1. 2017.
Amahalu, N., et al., Effect of accounting information on market share price of selected firms listed on Nigeria stock exchange. International Journal of Recent Advances in Multidisciplinary Research, 2018. 5(01): p. 3366-3374.
Hasanuh, N., ANALISIS EARNING PER SHARE DAN HARGA SAHAM. Eqien: Jurnal Ekonomi dan Bisnis, 2019. 6(2): p. 74-79.DOI: https://doi.org/10.34308/eqien.v6i2.98.
Dewi, F.K. and I.O.D. Brata, THE INFLUENCE OF RETURN ON INVESTMENT (ROI) AND EARNINGS PER SHARE (EPS) ON CLOSING STOCK PRICE. Journal of Business Accounting and Economics, 2020. 6(2): p. 1705-1718.
Dita, A.H. and I. Murtaqi, The effect of net profit margin, price to book value and debt to equity ratio to stock return in the Indonesian consumer goods industry. Journal of Business and Management, 2014. 3(3): p. 305-315.
Kamar, K., Analysis of the effect of return on equity (ROE) and debt to equity ratio (DER) on stock price on cement industry listed in Indonesia stock exchange (IDX) in the year of 2011-2015. IOSR Journal of Business and Management, 2017. 19(05): p. 66-76.DOI: https://doi.org/10.9790/487X- 1905036676.
Nugraha, D.R. and B. Sudaryanto, Analysis of the Influence of DPR, DER, ROE, and TATO on Stock Prices (Case Study on Basic Industry and Chemical Companies Listed on the Stock Exchange 2010-2014). Diponegoro Journal Of Management Vol.5, No.4, 1-12. 2016.
Kazem, A.A. and A.S. Shaker, ATTEMPTS BY KING WILLIAM III TO FORM A REGULAR AND PERMANENT ARMY IN ENGLAND 1689-1702. PalArch's Journal of Archaeology of Egypt/Egyptology, 2021. 18(18): p. 389-402.
Edison, A. and A.P.A. Nugroho, THE EFFECT OF LEVERAGE AND SALES GROWTH ON EARNING MANAGEMENT. PalArch's Journal of Archaeology of Egypt/Egyptology, 2020. 17(4): p. 3442-3454.
Rahmatiah, C., The Effect of Company Size, ROE, DER, and EPS on Stock Prices in Food and Beverage Companies Listed on the Indonesia Stock Exchange for the 2015-2019 Period. JIEB: Scientific Journal of Business Economics, 372-385. 2020.
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Author
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
