Analysis on the Influence of Financial Leverage To Earnings Per Share (EPS)
| Main Authors: | Paramitha, Raras Virginia, Widiastuti, Retno, Afiatin, Yunia |
|---|---|
| Format: | Article info Journal |
| Terbitan: |
Jurusan Akuntansi Politeknik Negeri Malang
, 2014
|
| Online Access: |
http://jmam.polinema.ac.id/index.php/jmam/article/view/11 |
Daftar Isi:
- Investors often get a difficulty to make a prediction and analyze variety of risk and uncertainties. The uncertainty is caused by the context of return and risk becomes a prudent consideration. This leads them to know the strengths and the weaknesses of a company. The financial ratios contribute to predict prices or stock returns in the stock return in the stock market. The investors commonly considerate the Earnings per Share (EPS) and the factors that affecting it. The are many factors that affect the rise and fall of EPS, one of which is financial leverage that plays a role over the capital structure. This study aimed to clarify the effect of DAR and DER on EPS, both partially ad simultaneously. The variables use in this study were Debt to Total Asset Ratio (DAR) and Debt to Equity Ratio as independent variables and Earning per Share (EPS) as dependent variable. Samples were 33 companies that met the criteria of the consumer goods sector companies listed in Indonesia Stock Exchange (IDX) 2013. The data was obtained from the Indonesia Stock Exchange (IDX). The method of the data analysis used was Multiple Linear Regression Model. The partial test show that statistically, both the DAR and DER affecting EPS. DAR had significant negative effect on EPS. The result shown by the negative regression coefficient on the multiple linear regression coefficient on the multiple linear regression model. In contrast to the DAR, DER has significant positive effect on EPS.