The influences of return on assets (roa), return on equity (roe), debt to equity ratio (der), and earning per share (eps) toward share price in communication subsector companies listed in Indonesia stock exchange for 2006-2013 period

Main Author: Sutan Doli Diapari
Format: Bachelors
Terbitan: Fakultas Ekonomi dan Bisnis
Subjects:
Daftar Isi:
  • This research is aimed to analyze the influence of independent variables consist of Return on Assets (ROA), Return on Equity (ROE), Debt to Equity Ratio (DER) and Earning Per Share (EPS), toward share price. Companies� financial ratios are variables that are presumed affecting share price within 2006-2013 period. The analysis is subjected to telecommunication companies listed in Indonesia Stock Exchange. The tests conducted in this research are classic assumption test, which consist of 4 basic assumptions which are, normality, multicolinearity, autocorrelation and heteroscedasticity. Moreover, there was conducted multiple linear regression test in order to define multiple linear regression equation showing relationships between dependent variable with independent variables. F test is conducted in order to discover simultaneous influences of independent variables toward dependent variable and T test that is conducted to discover significance of independent variables partially toward dependent variable by assuming other variables constant. The simultaneous test shows that all the variables, which are Return on Assets (ROA), Return on Equity (ROE), Debt to Equity Ratio (DER) and Earning Per Share (EPS) affect share price simultaneously.The result of partial test shows that Earning Per Share (EPS) influence share price significantly and it is the most partially influental to the share price with tcount > ttable (9.491 > 1.72).