Abstract
This study aims to determine the effect of Return on Assets, Return on Equity and Earning Per Share on stock prices at PT. Gajah Tunggal Tbk. The method used was explanatory research with a sample of 8-year financial statements in the form of a panel PT. Gajah Tunggal Tbk. The analysis technique uses statistical analysis with regression testing, correlation, determination and hypothesis testing. The results of this study Return on Assets have a significant effect on stock prices by 53.4%, hypothesis testing obtained significance of 0.040 <0.05. Return on Equity has a significant effect on stock prices by 83.0%, hypothesis testing obtained significance of 0.002 <0.05. Earning Per Share has a significant effect on the stock price of 97.9%, the hypothesis test obtained significance 0,000 <0.05. Return on Assets, Return on Equity and Earning Per Share simultaneously have a significant effect on the stock price of 99.5%, the hypothesis test obtained significance 0,000 <0.05.
Highlights
Firm is an organization that combines and organizes various resources with the aim of producing goods and services for sale (Ali et al, 2018; Della Torre, 2019; Ren & Jackson, 2020; Tzabbar et al, 2017)
Return on Assets, Return on Equity and Earning Per Share have a significant effect on stock prices by obtaining a regression equation Y = 34.973 - 0.725X1 - 0.069X2 + 0.065X3, the correlation value of 0.995 or has a strong relationship with the contribution of influence of 99.5% while the remaining 5.0% is influenced by other factors
Return on Assets has a significant effect on stock prices with an effect contribution of 53.4%
Summary
Firm is an organization that combines and organizes various resources with the aim of producing goods and services for sale (Ali et al, 2018; Della Torre, 2019; Ren & Jackson, 2020; Tzabbar et al, 2017). Stock price as an indicator to measure the success of a company's management, where market power on the stock market is indicated by the sale and purchase of the company's shares in the capital market (Cao et al, 2002; Dunford et al, 2010; Fu et al, 2020 ; Yin et al, 2020). Shareholders who are dissatisfied with management's performance can sell their shares and invest their money in other companies (Sunarsi et al, 2019; Sunarsi & Kusjono, 2019). If this is done, it will reduce the stock price of a company (Astuti & Husna, 2020)
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