The Effect of Return on Equity, Earnings Per Share, and Price Earning Ratio on Stock Prices

Abstract

This study aims to analyze the effect of return on equity (ROE), earnings per share (EPS), and price earning ratio (PER) partially and jointly (simultaneously) on the share prices of processed food sub-industry companies listed on ISSI during the period 2016 – 2020. This study had test samples of 7 processed food sub-industry companies listed on the Indonesia Sharia Stock Index (ISSI). The data used in the study was panel data type with 35 samples while the type of research used was associative research with a quantitative approach and using panel data regression. The results of the t-statistics test show that the ROE and PER variables have a negative and insignificant influence on stock prices. The EPS variable has the results of t-statistics testing, which has a positive and significant effect on stock prices. Based on the results of the F-statistic test, the variationof ROE, EPS, and PER together (simultaneously) has a positive and significant effect on the stock price. The change in stock price in this study can be explained by the ROE, EPS, and PER variables of 27% and the remaining 73% is explained by other variables outside the variables in this study.