2019•Unpublished venueRequires access

The effect of return on assets, debt to equity ratio and earnings per share on stock price in food and beverage companies listed on the Indonesia stock exchange

Hanwinda Hanwinda

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Abstract

Stock is a capital invested by investors in a company. However, investors should know the company’s stock price before determining which company will be invested. Stock price is one of the forms of investment used as a guide to help investor in assessing a company’s performance. However, the stock price not only differs from one company to another company, but also between different periods. This research is intended to study the effect of return on assets, debt to equity ratio and earning per share partially and simultaneously in food and beverage companies listed on the Indonesia Stock Exchange in the period 2012-2015. This research is a quantitative descriptive research using secondary data in the form of financial statements. The sampling method used was purposive sampling method, out of a total of 18 companies, 11 companies were selected as sample. The analysis model used in this research is the multiple linear regression model. The results of this research indicate that partially, return on assets has insignificant effect on the stock price, debt to equity ratio has no significant effect on the stock price, and earnings per share has significant effect on the stock price. Simultaneously, return on assets, debt to equity ratio and earnings per share have a significant effect om the stock price.

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What this paper is about

Stock is a capital invested by investors in a company. However, investors should know the company’s stock price before determining which company will be invested. Stock price is one of the forms of investment used as a guide to help investor in assessing a company’s performance. However, the stock price not only differs from one company to another company, but also between different periods. This research is intended to study the effect of return on assets, debt to equity ratio and earning per share partially and simultaneously in food and beverage companies listed on the Indonesia Stock Exchange in the period 2012-2015. This research is a quantitative descriptive research using secondary data in the form of financial statements. The sampling method used was purposive sampling method, out of a total of 18 companies, 11 companies were selected as sample. The analysis model used in this research is the multiple linear regression model. The results of this research indicate that partially, return on assets has insignificant effect on the stock price, debt to equity ratio has no significant effect on the stock price, and earnings per share has significant effect on the stock price. Simultaneously, return on assets, debt to equity ratio and earnings per share have a significant effect om the stock price.

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Available abstract

Stock is a capital invested by investors in a company. However, investors should know the company’s stock price before determining which company will be invested. Stock price is one of the forms of investment used as a guide to help investor in assessing a company’s performance. However, the stock price not only differs from one company to another company, but also between different periods. This research is intended to study the effect of return on assets, debt to equity ratio and earning per share partially and simultaneously in food and beverage companies listed on the Indonesia Stock Exchange in the period 2012-2015. This research is a quantitative descriptive research using secondary data in the form of financial statements. The sampling method used was purposive sampling method, out of a total of 18 companies, 11 companies were selected as sample. The analysis model used in this research is the multiple linear regression model. The results of this research indicate that partially, return on assets has insignificant effect on the stock price, debt to equity ratio has no significant effect on the stock price, and earnings per share has significant effect on the stock price. Simultaneously, return on assets, debt to equity ratio and earnings per share have a significant effect om the stock price.

Key concepts: Earnings per share, Debt-to-equity ratio, Stock exchange, Price–earnings ratio, Return on equity, Business, Growth stock, Restricted stock

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The effect of return on assets, debt to equity ratio and earnings per share on stock price in food and beverage companies listed on the Indonesia stock exchange — Research Paper | ScholarLens