Indonesian Financial Review
Vol. 5 No. 2 (2025)

The Influence of Earnings Per Share and Return On Investment on Stock Prices in The Banking Sector Listed on IDX

Budhiarjo, Intan Sari (Unknown)
Dewi, Iriana Kusuma (Unknown)



Article Info

Publish Date
13 Jan 2026

Abstract

This study aims to examine the effect of Earnings Per Share (EPS) and Return on Investment (ROI) on stock prices in the banking sector listed on the Indonesia Stock Exchange. A quantitative approach is employed using secondary data from published financial statements. The sample consists of six banking companies selected from a population of 46 firms based on predetermined criteria. Data analysis includes descriptive statistics, panel data regression, hypothesis testing, and the coefficient of determination. The results show that EPS does not have a significant partial effect on stock prices, while ROI has a significant positive effect. Simultaneously, EPS and ROI significantly influence stock prices, indicating that profitability indicators play an important role in explaining stock price movements in the Indonesian banking sector.  

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Journal Info

Abbrev

IFR

Publisher

Subject

Economics, Econometrics & Finance

Description

The intent of the Editors of The Indonesia Financial Review is to discuss, explore, and disseminate the latest issues and developments in Empirical Financial Economics (JEL classification: G), particularly those related to financial frictions in the Emerging Markets. The others are accepted such as ...