The Influence of Earnings per Share and Interest Rate on Stock Prices in the mediation of Firm Value (Study on Financial Companies listed on the Indonesia Stock Exchange) Tonny Serfius Maringka (1*)
Management Department, Manado Eben Haezar School of Economics
maringka_ts[at]yahoo.com*
Abstract
This study aims to examine and analyze the company^s characteristic variables, namely earnings per share and interest rates as macroeconomic variables and their effect on stock prices mediated by firm value. This study uses quantitative methods and path analysis with the object of research as many as 30 financial companies belonging to banks and non-banks that have been listed on the Indonesia Stock Exchange. The results show that the direct effect of earning per share on stock price has a positive and significant coefficient. Indirectly or through mediation (intervening) the firm value variable shows that the effect of the earning per share variable on the stock price is obtained by a positive and significant coefficient value. Furthermore, the results of the study show that the direct effect of interest rate on stock price has a positive direction coefficient and is not significant. The results of the research indirectly or through mediation (intervening) of firm value variable indicate that the effect of interest rate variable on stock price is obtained by positive and insignificant coefficient value. Meanwhile, the firm value directly on the stock price has a significant effect.
Keywords: Earning per Share, Interest Rate, Firm value, Financial Company
