THE EFFECT OF EARNINGS PER SHARE (EPS) & RETURN ON EQUITY (ROE) ON STOCK PRICE OF BANKING COMPANY LISTED IN INDONESIA STOCK EXCHANGE (IDX) 2010-2014
ABSTRACT: Capital market is
one of the instruments in the world of business to make profit. Investors
invest at capital markets because of the expected profit. Investors often
suffer loss of funds when investing because they do not see the factors that
affect the value of the stock price. The purpose of this research was analyzing
the effect of Earnings per Share (EPS) and Return on Equity (ROE) on Stock
Price of banking company listed on Indonesia Stock Exchange in 2010-2014. The
samples used were 5 banking companies that passed the test of purposive
sampling. Correlation coefficient (R) indicates the variable has a strong
relationship. Coefficient of determination shows that the Stock Price is
influenced by the EPS and ROE. Simultaneously both EPS and ROE variables affect
stock price. Partially, EPS have significant positive effect on Stock Price
while ROE does not affect partially on Stock Price. Thus, banking companies
listed in the Indonesia Stock Exchange in improving corporate performance need
to pay attention to Earnings per Share and Return on Equity because both
variables simultaneously have a significant effect on stock prices
Author: Mohamad Rianto
Talamati, Sifrid S Pangemanan
Journal Code: jpmanajemengg150059
