Abstract
The purpose of this research is showed to know the effect of Financial Leverage, Firm Size, Basic Earning Power and Activity Ratio to Earning Per Share on manufactured companies automotive and components sub-sector that listed on Indonesian Stock Exchange period 2013-2017. Sampling is done by purposive sampling method. The population in this research were 13 companies and the sample used were 12 manufacturing companies of automotive and components sub sector that listed on Indonesian Stock Exchange period 2013-2017. The method used in this research is hypothesis testing method. The analytical tool used is multiple linear regression analysis tested by using Program SPSS version 20 and Microsoft Excel 2016. The data used is secondary data in the form of complete financial statements during research period. The result of this research shows that Financial Leverage, Firm Size and Basic Earning Power have an effect to Earning Per Share. While Activity Ratio has no effect to Earning Per Share.
Highlights
The automotive and component industries in Indonesia have developed into an important pillar in manufacturing sector in the country because many world-famous car companies have the manufacturing factories or even increasing their production capacity in Indonesia, a country with economy the largest in Southeast Asia as well as the countries with the largest population in Southeast Asia and the fourth position largest population in the world
Investors who will invest their funds will certainly do a certain analysis to assess whether the funds he will invest provide a favorable dividend at this time and in the future or not, an investor is attracted by the company's performance but Berlian Karlina, Muhamad Riki Ramadhan / The Effect of Financial Leverage, Company Sizes, Basic Earning Power and Activity Ratio to Earning Per Share / 136 - 141 by the value of Earning Per Share produced by the company
Effect of Financial Leverage on Earning Per Share According to Rodoni and Ali (2014) the ratio of Financial Leverage or called the debt ratio is a tool in considering the possibility of company default on debt contracts
Summary
The automotive and component industries in Indonesia have developed into an important pillar in manufacturing sector in the country because many world-famous car companies have the manufacturing factories or even increasing their production capacity in Indonesia, a country with economy the largest in Southeast Asia as well as the countries with the largest population in Southeast Asia and the fourth position largest population in the world. This is interesting world companies, especially automotive and component companies to open factories in Indonesia. The higher value of Earning Per Share shows that the company is in a healthy condition and will be one of the factors that attract investors to invest their funds in the company
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