Abstract

This research aims to find out whether the influence of Return on Equity (ROE), the Price Earnings Ratio (PER) and the Capital structure of the company's share price against the Sub Sectors of transport registered in Indonesia stock exchange (BEI) of the period of 2015-2018 well partially as well as simultaneous. The research method used is the quantitative approach, this type of research is descriptive and explanatory nature. This study contains a population of 39 companies with samples as many as 9 companies for the 4-year research period by using Purposive sampling technique as the determination of the sample. Engineering data collection, documentation, data types used are secondary data in financial statements BEI. The analysis of the data used is multiple linear regression. Prior to testing the hypothesis will be tested using the test data assuming the classics. The results of the analysis of the coefficient of determination in getting adjusted R square values of 0.382 mean variation variable the company stock price can be explained by variation in return on equity, variable price earnings ratio and structure of capital was amounted to 38.2% While the rest of 61.8% is explained by other free variables. The results showed that the simultaneous return on equity, price earnings ratio and capital structure influenced positively and significantly to the stock price with value and the value of 2.90 > 6.591 significant 0.01 3.739 and significant value of 0.01 2.03693 and significant value of 0.027 0.05.

Highlights

  • Some analysis to be used by investors to know the suitability of stock price performance ratio through the company's ROE (Return on Equity) ratio to measure the ability of a company making a profit through capital owned by dividing the net profit after tax by the amount of the equity of the company

  • Based on the results of testing the hypothesis partially (T-test), Return on Equity (ROE) partially positive and significant effect against the price of the stock on the company's transport sector sub companies listed on the Indonesia stock exchange (Bei) the year 2015-2018

  • Based on the results of testing the hypothesis partially (T-test), the Price Earnings Ratio (PER) partially positive and significant effect against the price of the stock on the company's transport sector sub listed in Indonesia stock exchange (Bei) of the year 20152018

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Summary

Introduction

Some analysis to be used by investors to know the suitability of stock price performance ratio through the company's ROE (Return on Equity) ratio to measure the ability of a company making a profit through capital owned by dividing the net profit after tax by the amount of the equity of the company. The level of the company's revenue from EPS (Earning Per Share) which is closely related to the increase in the share price, when fluctuations EPS (Earning Per Share) the higher the height changes its stock price and refund (Return) of its shares. Management needs to master how to determine the optimal capital structure related to the level of leverage of the company, namely the use of the debt so that the company has a good capital structure. The management need to balance the benefits and tradeoffs that arise due to the use of debt

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