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Journal : IIJSE

The Effect of Price Earning Ratio, Debt to Equity Ratio, Dividend Payout Ratio on the Value of the Company the Financial Sector Banking Sub-Sector Listed on the IDX Gustindy Reza Akbar; Fuad Ramdhan Ryanto
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 9 No 1 (2026): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v9i1.9860

Abstract

This study aims to examine the effect of price earning ratio, debt to equity ratio, and dividend payout ratio on the value of the company in the financial sector banking Sub sector listed on the Indonesia Stock Exchange. Using saturated sampling, a total of 38 financial sector companies were obtained. This study uses a quantitative approach with analytical techniques used are classical assumption test, multiple linear regression analysis, multiple correlation coefficient analysis (R), coefficient of determination analysis (R2), F test and t test. The results showed that the price earning ratio and debt to equity ratio had a positive but insignificant effect on the value of the company, while the dividend payout ratio had a positive and significant effect on the value of the company. These findings suggest that the presence of dividend payout ratio plays an important role in increasing the value of the company.
The Effect of Debt to Asset Ratio, Return on Assets, and Current Ratio on Stock Returns with Earnings per Share as a Mediating Variable in the Property and Real Estate Sector Listed on the Indonesia Stock Exchange Sandya, Alvaro Danadyaksa; Ryanto, Fuad Ramdhan
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 9 No 1 (2026): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

This study aims to analyze the effect of Debt to Asset Ratio (DAR), Return on Assets (ROA), and Current Ratio (CR) on stock returns with Earnings per Share (EPS) as a mediating variable in property and real estate sector companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. The study employs a quantitative approach with an associative research design, utilizing secondary data in the form of annual financial statements and stock price data published by the IDX. The research sample was determined using a purposive sampling technique, resulting in 82 companies that met the research criteria. Data analysis was conducted using path analysis with the assistance of SPSS software. The results show that directly, DAR and ROA have a significant negative effect on stock returns, while CR has a significant positive effect on stock returns. In the mediation equation, ROA has a significant positive effect on EPS, CR has a significant negative effect on EPS, while DAR has no significant effect on EPS. In addition, EPS is proven to have a significant negative effect on stock returns, thereby acting as a mediating variable that weakens the relationship between financial variables and stock returns. These findings indicate that in the property and real estate sector, market responses are not always linearly aligned with profitability indicators and earnings per share. This study provides an empirical contribution in clarifying the mechanism of the relationship between financial ratios and stock returns through EPS and serves as a reference for investors and company management in understanding the dynamics of capital market valuation.