Al-Buhuts (e-journal)
Vol. 20 No. 2 (2024): Al-Buhuts

Determination of ROE, DER, and EPS on Stock Prices: A Study on State-Owned Banks On The Indonesia Stock Exchange

Hisnol Jamali (Unknown)
Haeruddin, Haeruddin (Unknown)



Article Info

Publish Date
30 Dec 2024

Abstract

T This study aims to analyze the effect of Return on Equity (ROE), Debt to Equity Ratio (DER), and Earning Per Share (EPS) on the Stock Price of companies listed on the Indonesia Stock Exchange. The research method uses panel data regression with the Fixed Effects Model approach and the Hausman Test to determine the most appropriate model. The findings show that ROE has a negative but not significant effect on the Stock Price, while DER has a negative and significant effect, and EPS has a positive and significant effect on the Stock Price. This research contributes by emphasizing the importance of EPS in investment valuation as well as the need to manage DER carefully. The implication of this result is that investors should pay more attention to EPS in investment decisions, while companies are advised to focus on improving EPS and DER management. The study is limited to data for a specific period and a small number of companies, which can affect the generalization of results. his study aims to analyze the effect of Return on Equity (ROE), Debt to Equity Ratio (DER), and Earning Per Share (EPS) on the Stock Price of companies listed on the Indonesia Stock Exchange. The research method uses panel data regression with the Fixed Effects Model approach and the Hausman Test to determine the most appropriate model. The findings show that ROE has a negative but not significant effect on the Stock Price, while DER has a negative and significant effect, and EPS has a positive and significant effect on the Stock Price. This research contributes by emphasizing the importance of EPS in investment valuation as well as the need to manage DER carefully. The implication of this result is that investors should pay more attention to EPS in investment decisions, while companies are advised to focus on improving EPS and DER management. The study is limited to data for a specific period and a small number of companies, which can affect the generalization of results.

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Journal Info

Abbrev

ab

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Buhuts (e-Journal) : is a biannual peer-reviewed journal published in June and Desember by Lembaga Penelitian dan Pengabdian kepada Masyarakat (LP2M) Institut Agama Islam Negeri (IAIN) Sultan Amai Gorontalo, Indonesia Print-ISSN 1907-0977, Online-ISSN 2442-823X Al-Buhuts (e-Journal) encompasses ...