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.