2021Indonesian Financial ReviewOpen access

ROA, ROE, and EPS on Stock Prices in The Basic & Chemical Industry Sector Listed on The Jakarta Composite Index

Sonia Krisdayanti

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Abstract

This study aims to examine the effect of Return On Assets (ROA), Return On Equity (ROE) and Earning Per Share (EPS) on Stock Prices in Manufacturing Companies in the Basic & Chemical Industry Sector Listed on the Indonesia Stock Exchange (IDX) for the 2015-2019. The sample selection in this study used purposive sampling method. The method used in this research is panel data regression analysis. The results of the research are: Return on Assets (ROA) has no a significant effect on stock prices. This is indicated by the t-count is greater than the t-table value (1.009 0.05), while the Return On Equity (ROE) has no significant effect on the price share. This is indicated by the t-count is smaller than the t-table value (0.849 0.05), then Earning Per Share (EPS) has a significant effect on stock prices. This is indicated by the t-count is greater than the t-table value (2.16  > 1.98), with a probability value smaller than the significance or (0.0331 2.63), and the probability value is also smaller than the 0.05 significance level (0.0000 < 0.05).

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What this paper is about

This study aims to examine the effect of Return On Assets (ROA), Return On Equity (ROE) and Earning Per Share (EPS) on Stock Prices in Manufacturing Companies in the Basic & Chemical Industry Sector Listed on the Indonesia Stock Exchange (IDX) for the 2015-2019. The sample selection in this study used purposive sampling method. The method used in this research is panel data regression analysis. The results of the research are: Return on Assets (ROA) has no a significant effect on stock prices. This is indicated by the t-count is greater than the t-table value (1.009 0.05), while the Return On Equity (ROE) has no significant effect on the price share. This is indicated by the t-count is smaller than the t-table value (0.849 0.05), then Earning Per Share (EPS) has a significant effect on stock prices. This is indicated by the t-count is greater than the t-table value (2.16  > 1.98), with a probability value smaller than the significance or (0.0331 2.63), and the probability value is also smaller than the 0.05 significance level (0.0000 < 0.05).

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Available abstract

This study aims to examine the effect of Return On Assets (ROA), Return On Equity (ROE) and Earning Per Share (EPS) on Stock Prices in Manufacturing Companies in the Basic & Chemical Industry Sector Listed on the Indonesia Stock Exchange (IDX) for the 2015-2019. The sample selection in this study used purposive sampling method. The method used in this research is panel data regression analysis. The results of the research are: Return on Assets (ROA) has no a significant effect on stock prices. This is indicated by the t-count is greater than the t-table value (1.009 0.05), while the Return On Equity (ROE) has no significant effect on the price share. This is indicated by the t-count is smaller than the t-table value (0.849 0.05), then Earning Per Share (EPS) has a significant effect on stock prices. This is indicated by the t-count is greater than the t-table value (2.16  > 1.98), with a probability value smaller than the significance or (0.0331 2.63), and the probability value is also smaller than the 0.05 significance level (0.0000 < 0.05).

Key concepts: Return on assets, Return on equity, Stock exchange, Earnings per share, Book value, Nonprobability sampling, Econometrics, Economics

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ROA, ROE, and EPS on Stock Prices in The Basic & Chemical Industry Sector Listed on The Jakarta Composite Index — Research Paper | ScholarLens