EFFECT OF RETURN ON ASSETS (ROA), EARNINGS PER SHARE (EPS) AND RETURN ON EQUITY (ROE) ON SHARE PRICES
Meiryani, Cindy Aprilia

BINA NUSANTARA

Abstract

This study aims to determine the effect of ROA, PER, ROE on stock prices of manufacturing companies in the food and beverage sector. The population in the study was 30 samples. The sample in this study consisted of 10 companies listed on the IDX in the period 2017-2019. The sampling method used in this study was targeted sampling. The data used is secondary data collected using data documentation methods. The analysis technique used is multiple regression analysis and hypothesis test using the partial t-test and simultaneous F-test with a significance level of 5% and the determination of the coefficient of determination.
The results of the analysis show that the data passed the classical assumption test, including normally distributed data, multicollinearity does not occur and heteroscedaticity does not occur. The results of the Return on Asset (ROA) and Return on Equity (ROE) regression have partially no effect on stock prices. Meanwhile, earnings per share (EPS) partially affects stock prices.
The food and beverage sector is a growing industry, so it is expected to be able to properly manage its financial performance to generate large profits and expand its operations even outside Indonesia without having to use large amounts of liabilities.

Keywords: Sampling Method

Topic: Computer and Mathematics