Earnings Per Share Research Articles

An empirical analysis of sustainability disclosure and its impact on firm performance: a study of companies in the agriculture sector listed on the Indonesian stock exchange

Abstract The agriculture sector plays a key role in the Indonesian economy, contributing significantly to the nation’s Gross Domestic Product (GDP) and providing livelihoods to a substantial portion of the population. In the last decades, there has been an increasing appreciation of the importance of sustainability within this sector. However, research exploring the influence of sustainability on company performance within the Indonesian agriculture sector remains limited, highlighting the ongoing need for further research. This study investigates how companies in the Indonesian Stock Exchange’s Agriculture Sector use sustainability disclosure to signal their sustainability practices and how this relates to their firm performance. The sample data of this study comprised of 135 observations of 44 companies listed in the Agriculture Sector from 2020 to 2022. Research data was collected from three sources: the sustainability report, the company’s annual report, and publicly available capital market data. The research data was analysed empirically using multiple linear regression analysis. The results indicate that the relationship between sustainability disclosure and financial performance unfolds as follows: Environmental, Social and Governance (ESG) factors positively influence financial performance, as measured by ROA and Return on Equity (ROE), yet exhibit no significant impact on firm performance when measured by Return on capital employed (RoCE). However, it’s noteworthy that, apart from book value, which unexpectedly displays a substantial negative relationship with both Return on Asset (ROA) and Return on Equity (ROE), all other control variables align with our expectations. Specifically, current assets, Earnings per Share (EPS), and net profit are consistent with our positive expectations, while current debt and leverage conform to our anticipated negative results.

Unraveling Indonesia's Stock Market Dynamics for Global Insights

This study examines stock price dynamics in the LQ-45 index on the Indonesia Stock Exchange from 2017 to 2021, focusing on factors like inflation, interest rates, Earning Per Share (EPS), and Price Earning Ratio (PER). Using quantitative methods and data from annual reports and official sources, the research found that inflation and interest rates had no significant impact on stock prices, while EPS and PER showed a positive and significant influence. These findings contribute to understanding stock market behavior and can guide companies and investors in making informed decisions. Highlight: Stock Price Trends: LQ-45 index insights on market dynamics. Economic Influences: Examining inflation and interest rates' impact. EPS and PER Impact: Significant role in stock valuation revealed. Keyword: Stock Prices, LQ-45 Index, Indonesia Stock Exchange, Inflation, Earning Per Share (EPS)

Pengaruh Earning Per Share Dan Return On Assets Terhadap Harga Saham (Studi Pada PT. Hanjaya Mandala Sampoerna Tbk)

This study aims to determine the effect of earnings per share and return on assets on stock prices (studies at PT. Hanjaya Mandala Sampoerna Tbk). The research problem in this study is whether Earning Per Share (EPS) and Return On Assets (ROA) partially and simultaneously affect the stock price at PT. Hanjaya Mandala Sampoerna Tbk. The research method uses the Multiple Linear Regression analysis technique with SPSS version 26. Based on the results of the analysis, it can be concluded that partially the Earning Per Share (EPS) variable has a positive and significant effect on stock prices, the Return On Assets (ROA) variable has no effect on prices share. Simultaneously the EPS and ROA variables affect stock prices. The coefficient of determination (R2) in this study is 0.810, meaning that EPS and ROA affect stock prices by 81% and the remaining 19% is influenced by other variables not included in this study

Analyst coverage and real earnings management: Does IFRS adoption matter? UK evidence

This study examines the impact of analysts coverage on real earnings management (REM) decisions. The study further investigates the effect of mandatory IFRS adoption on the relationship between analyst coverage and REM. We constructed a sample of UK non-financial listed firms for the period 1997–2021. The results demonstrate that firms followed by a large number of financial analysts record higher levels of earnings management. This result supports the contention that high intensity of analyst coverage imposes extra pressure on firms' managers to meet analysts' earnings per share (EPS) expectations, motivating a higher level of earnings management. Contrary to expectations, the introduction of IFRS fails to strengthen the monitoring role of security analysts on firms' management: rather, managers utilize the inherent flexibility and available discretion in the principles-based IFRS to meet analysts’ benchmarks by means of REM activities. These results are robust after controlling endogeneity.

The Effect Of Earnings Per Share, Return On Equity, And Net Profit Margin On Stock Returns Of Food Sub-Sector Companies and Beverages On Indonesia Stock Exchange

Indonesia's economy is largely driven by increasing household consumption and one of the fast-growing industries is the food and beverage industry. This study aims to test whether independent variables namely Earnings Per Share (EPS) X1, Return On Equity (ROE) X2, and Net Profit Margin (NPM) X3 affect Stock Return. The population in this study is 40 Food and Beverage Subsector companies located on the Indonesia Stock Exchange (IDX) for the 2014-2021 period, the sample used in this study is 13 companies selected by purposive sampling, and the data collection technique used is documentation. The data analysis techniques used are classical assumption tests, descriptive statistical tests, and hypothesis tests. The results of this study show that some Earning Per Share (EPS) have a negative effect on stock returns, Net Profit Margin (NPM) and Return On Equity (ROE) have a positive effect on stock returns, then simultaneously Earning Per Share (EPS), Return On Equity (ROE) and Net Profit Margin (NPM) have a significant effect on

The Factors Influencing The Stock Prices of Construction Industry Enterprises: An Empirical Study in Vietnam

Purpose: The construction sector is essential for the economic development of a country. This industry is likewise a key player and has a significant influence on the stock market. Hence, it is necessary to analyze the variables that influence the stock prices in the construction sector, as this will enable investors to maximize profits and mitigate risks. Theoretical framework: This study evaluates the impact of macro factors and internal factors on the stock prices of the construction industry. Design/Methodology/Approach: This study utilizes quarterly financial reports from 56 construction industry enterprises in the Vietnamese stock market during the period from 2016 to 2022 to examine the factors affecting the stock prices of this sector. Findings: The results of the analysis indicate that the Random Effects Model (REM) is the most appropriate model, with factors such as the Consumer Price Index (CPI), Earnings Per Share (EPS), firm size (SIZE), and Price-Earnings ratio (PE) all having a positive impact on the stock prices of the construction industry. Research, Practical & Social implications: Based on these findings, the article provides recommendations for investors and relevant industry stakeholders. Originality/value: This article has conducted extensive analyses of factors influencing the stock prices of construction industry enterprises. The authors also provide suggestions for investors and relevant industry stakeholders to make investment decisions.

Pengaruh Likuiditas, Profitabilitas, Solvabilitas Terhadap Harga Saham Perusahaan Otomotif Di Bursa Efek Indonesia (BEI) Tahun 2016 - 2020

The automotive industry has looked quiet in recent years, this industry is not as busy as other sectors such as the property sector, mining or the financial sector. The aim of this research is to find out and analyze or provide empirical evidence regarding liquidity, profitability and solvency on automotive company share prices. Data collection in this research uses documentation techniques to obtain data. The data in this research comes from the IDX regarding company financial reports taken in 2016 - 2021. The data collection method is the classic assumption test. Prerequisite tests or classic assumptions (normality test, multicollinearity test, autocorrelation test, heteroscedasticity test), model test (ANOVA), hypothesis test (multiple linear regression analysis, partial test). Based on the results of the liquidity projection t test with a significant Current Ratio (CR) of 0.028, which means it is smaller than the normal value of 0.05, it can be concluded that there is an influence on share prices. For profitability, the projected Earning Per Share (EPR) is significant at 0.823, which means it is greater than 0.05, so it can be concluded that profitability has no significant effect on share prices. For solvency, the projected Debt to Equity Ratio (DER) has a significance of 0.032, which means it is smaller than 0.05, so it can be concluded that solvency has an effect on share prices.

Navigating the Cascading Ripples: A Study on the Interplay between the COVID-19 Recession and the Financial Fortunes of Micro Finance Institutions (MFIs)

Purpose: The success of Micro Finance Institutions (MFIs) hinges on effective decision-making amidst challenging economic circumstances, necessitating the ability to anticipate and navigate future business conditions. This research aims to explore the relationship between financial performance and the COVID-19 pandemic's impact on MFIs listed on the National Stock Exchange (NSE) in India. By analyzing financial data and employing statistical techniques, the study seeks to elucidate the resilience of MFIs during the pandemic and the role of financial ratios in predicting earnings per share (EPS). Additionally, the research aims to contribute to a deeper understanding of the interplay between financial indicators and organizational outcomes within the microfinance sector. Design/Methodology/Approach: This research adopts a quantitative approach, utilizing secondary data obtained from quarterly financial reports of selected MFIs listed on the NSE from 2018 to 2022. Statistical analyses such as paired t-tests, correlation, and regression are employed to assess the impact of the COVID-19 pandemic recession on MFIs' profitability and to investigate the relationship between financial ratios and earnings per share (EPS). Findings/Result: Despite the COVID-19 pandemic recession, the profitability of Indian Micro Finance Institutions (MFIs) remained largely unaffected, as indicated by non-significant differences in earnings before interest and taxes (EBIT) before and after the pandemic. Regression analysis highlighted significant influences of financial ratios like the current ratio, total asset ratio, net profit ratio, and gross profit ratio on earnings per share (EPS), underscoring the sector's resilience and the importance of financial analysis in predicting MFI performance. Originality/Value: This research offers novel insights into the resilience of Indian Micro Finance Institutions (MFIs) during the COVID-19 pandemic and underscores the significance of financial analysis in guiding strategic decision-making processes within the microfinance sector. Paper Type: Empirical Research.

Financial Ratio Analysis in Determining Stock Investment on Banking Companies Listed on IDX for the 2018-2022 Period

This research aims to determine the effect of Return On Assets (ROA), Return On Equity (ROE), Debt to Equity Ratio (DER), and Earning Per Share (EPS) to stock price in banking companies listed on the Indonesia Stock Exchange (IDX) period 2018-2022. The independent variables (X) in this research are ROA (X1), ROE (X2), DER (X3), and EPS (X4). Meanwhile, the dependent variable (Y) in this research is stock price. The method used in this research is descriptive quantitative method. The population in this research is all banking companies listed on the Indonesia Stock Exchange for the 2018-2022 period totaling 46 companies. The method for determining the research sample used purposive sampling, the total research sample was 27 companies and the number of observations was 135 companies. Based on the research results, it shows that partially ROA, ROE, and DER have no effect and are not significant on stock price, while EPS partially has a significant effect on stock prices. Simultaneously ROA, ROE, DER, and EPS have a significant effect on the stock prices.

Determinants of stock prices in telecommunication industry: An application of fundamental analysis

The present study attempted to assess the impact of fundamental ratios on the share prices of selected telecommunication companies in India. India has dramatically expanded over the past ten years to become the second-biggest telecoms market worldwide, with 1.17 billion users. The Indian telecom industry has proliferated thanks in part to the government of India’s liberal and reformist policies and strong customer demand. It has become a lucrative investment sector for investors due to its recent and prospective growth. Data on 13 telecom firms indexed in the S&P BSE telecommunication index from 2013 to 2022 were taken from companies’ annual reports, the BSE website (Bombay Stock Exchange), and other secondary sources. Six firm-specific fundamental factors viz. Debt to Equity ratio (D/E), Current ratio (CR), Total Assets Turnover ratio (ATR), Earnings per share (EPS), Price to earnings ratio (P/E), Return on equity (ROE), and three country-specific fundamental factors viz. Gross Domestic Product, Inflation rate, and S&P BSE Sensex return were considered. Fixed effect panel regression through Generalized Least Square (GLS) model was performed to find inferences. Debt Equity ratio and Inflation rate were found to impact share price negatively. Conversely, the Total Assets Turnover ratio (ATR), Earnings per share (EPS), Price to Earnings ratio (P/E), and Return on Equity (ROE) positively impacted selected companies’ share prices. The study results will benefit individual & institutional investors in formulating their investment and portfolio diversification strategies for gaining a high effective rate of return on their investments.

Innovation Under Pressure

Abstract Firms become more efficient at innovation activities when they face pressure to meet earnings per share (EPS) targets using stock repurchases. Using a regression-discontinuity framework, we find that incentives to engage in “EPS-motivated buybacks” are followed by more citations and higher values for firms’ new patents. We trace these effects to improved allocation of R&D resources and a greater focus on novel innovation. The positive effects are concentrated among ex ante “innovation-efficient” firms that achieve better patenting outcomes after reorganizing (but not cutting) their R&D investments. Our findings illustrate that short-term earnings pressure can act through a free cash flow channel that motivates more efficient spending.

Factors affecting Stock Price Behaviour of Commercial Banks in Nepal Stock Exchange

This research investigates how factors such as Dividends Per Share (DPS), Earnings Per Share (EPS), Price-Earnings Ratio (PER), and Net Worth Per Share influence the Market Price Per Share of commercial banks in Nepal. The study analyzed the panel data from four commercial banks, consisting of 40 observations, to evaluate the correlation and influence of factors affecting stock price movements. In this study, secondary panel data covering ten years (2070/2071-2079/2080) has been used. Based on the results of this investigation, there is a significant positive correlation between the Market Price Per Share and the Dividends Per Share, Price-Earnings Ratio, and Net Worth Per Share but a negligible effect of Market Price Per Share and Earnings Per Share of commercial banks.

The Role of Digitalization and Environmental, Social, Governance in Enhancing Value Relevance of Accounting Information

The acceleration of the Industrial Revolution by the Covid-19 pandemic has enhanced the urgency of digitalization. In addition, the issue of ESG (Environmental, Social, and Government) and the achievement of the triple bottom line have become a major concern for businesses. In contrast, previous research indicates a decline in the value relevance of EPS (Earnings per Share) and BVPS (Book Value per Share) and an enhance in value relevance of non-financial information. This study investigates the effect of digitalization and ESG on the value relevance of accounting information, focusing on EPS and BVPS. This study employs four models with 249 samples from the IDX from 2017 to 2021. Using multiple linear regression, it is determined that, despite the positive significant effect of digitalization and ESG score, the presence of such non-financial information does not enhance the value relevance of accounting information. Moreover, the combination of ESG and digitalization still unable to enhance the value relevance of accounting data. Due to the inefficiency and lack of reporting standard of digitalization and ESG implementation. Therefore, the company should effectively implement and report these data.

Determinants of Fundamental Factors on Dividend Policy on the LQ45 Sharia Stock Index in Indonesia

This study aims to empirically examine the factors that are considered to influence dividend policy on the LQ 45 Sharia Stock Index in Indonesia. Dividend policy is closely related to determining the profit that will be distributed among shareholders and reinvestment as retained earnings. The independent variables in this study include Current Ratio (CR), Return on Equity (ROE), Debt to Equity Ratio (DER), and Earning Per Share (EPS). While the dependent variable is the Dividend Payout Ratio (DPR). The type of research is quantitative research that uses secondary data. The sampling method used was purposive sampling. It was found that 13 companies distributed dividends consecutively during the study period, namely 2016–2022. The data analysis technique used is multiple regression analysis with panel data as the method of analysis. Liquidity (CR) and Profitability (ROE) have no significant effect on the Dividend Payout Ratio (DPR). While Leverage (DER) and Earning per Share (EPS) have a significant influence on the Dividend Payout Ratio (DPR). Keywords: dividend payout ratio, current ratio, return on equity, debt to equity ratio, earning per share

FACTORS INFLUENCING STOCK PRICES: AN ANALYSIS OF COMPANY PERFORMANCE METRICS ON NSE

This study examines the factors that affect NSE stock values, focusing on metrics that quantify company performance. We look at a number of ratios, including price-to-earnings (P/E), return on equity (ROE), debt-to-equity (D/E), and earnings per share (EPS), to understand how they affect stock prices. The study uses quantitative approaches like regression analysis and qualitative evaluations to find out how these measures are related to stock prices. In order to provide a comprehensive analysis of stock price patterns, we also consider market sentiment and macroeconomic factors. By showing how politicians, financial analysts, and investors perceive and react to metrics of a company's performance, the findings are helpful for all three groups. Keywords: stock prices, National Stock Exchange (NSE), company performance metrics, earnings per share (EPS), price-to-earnings ratio (P/E ratio), return on equity (ROE), debt-to-equity ratio (D/E ratio), regression analysis, market sentiment, macroeconomic factors.

Unveiling the impact of firm-characteristics on sustainable development goals disclosure: A cross-country study on non-financial companies in Asia

This study examines the practices of the UN Sustainable Development Goals (SDGs) in Asian countries with special reference to listed firms in China, India, Indonesia, Japan, Malaysia, Singapore, and Saudi Arabia. Further, it evaluates the impact of firms’ specific factors on SDGs practices. The original sample consists of 1462 companies for the 2018–2021 financial years. Data are extracted from the Refinitiv Eikon Database. One-way ANOVA and regression analysis are used to estimate the data. Results reveal that there is a significant difference in SDGs practices among the elected countries. Moreover, results reveal that Return on Assets (ROA), Return on Equity (ROE), market value added, leverage, and current ratio have a negative and significant impact on SDGs practices, while the Earnings per Share (EPS) has a positive and significant impact on SDGs practices. This research contributes to the existing literature by making a comparison among the Asian largest economies regarding the achievement of UN sustainable development goals.

PENGARUH LEVERAGE KEUANGAN, LIKUIDITAS, EARNING PER SHARE DAN RETURN ON ASSET TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR SEKTOR FOOD AND BEVERAGE DI BURSA EFEK INDONESIA

The aim of this research is to determine and explain the influence of financial leverage, liquidity, earnings per share (EPS), and return on assets (ROA) on stock returns in manufacturing companies in the food and beverage sector on the Indonesian Stock Exchange. either simultaneously or partially. The population in this study was 72 companies. The sampling technique used was purposive sampling technique to obtain a sample of 24 companies with a research period of 4 years. The analysis technique used is a multiple linear regression model with descriptive statistical tests, classical assumption tests, and hypothesis testing. The results of the t test research show that the Financial Leverage variable (Debt to Equity Ratio) has a negative and insignificant effect on stock returns, Liquidity (Current Ratio) has a positive and significant effect on stock returns, Earning Per Share (EPS) has a positive and significant effect on stock returns, Return on Assets (ROA) has a positive and significant effect on stock returns in Manufacturing Companies in the Food and Beverage Sector on the Indonesian Stock Exchange. And the results of the F test show that the independent variables, namely Financial Leverage (Debt to Equity Ratio), Liquidity (Current Ratio), Earning Per Share (EPS) and Return On Assets (ROA) have a significant effect on the dependent variable, namely Stock Returns in Food Sector Manufacturing Companies. and Beverage on the Indonesian Stock Exchange. The coefficient of determination is 40.3%, meaning that variations in Financial Leverage (Debt to Equity Ratio), Liquidity (Current Ratio), Earning Per Share (EPS) and Return on Assets (ROA) are able to explain variations in stock returns of 40.3%. Meanwhile, the remaining 59.7% is influenced by other variables.

Accounting Factors in Stocks Return: Companies Listed on the Asean Exchange

The capital market can provide investors, because the selected securities investments are expected to provide a level of return commensurate with the risk the investor bears. The phenomenon that is currently occurring shows that returns are decreasing shares occur in companies in the agricultural companies on the ASEAN, are faced with expectations in the form of investing capital is to obtain a high rate of return low risk. This would be contrary to basic investment principles namely High Risk High Return. Companies listed on the stock exchange are investment commodities with relatively high risk. The nature of investment shares is compassionate and changes to influences originating from within and outside the country, such as changes in politics, economics, government regulations, or modifications within the company or industry. This research aims to determine the factors that influence stock returns, which consist of price book value (PBV), debt-equity ratio (DER), and earnings per share (EPS)—using purposive sampling, with sample 14 agricultural companies listed on the ASEAN Exchange during the 2017-2022 period. Data analysis used multiple linear regression and the hypothesis test using the T-test with a significance level 0.05. The regression analysis results found that only the price book value (PBV) variable had a significant positive effect on stock returns. Meanwhile, the variables debt equity ratio (DER) and earnings per share (EPS) do not affect stock returns simultaneously

EARNINGS PER SHARE, RETURN ON EQUITY, INFLATION, AND INTEREST RATES ON STOCK PRICE

This study aims to test and analyze the effect of earnings per share (EPS), return on equity (ROE), inflation, and interest rates on stock prices. The research population consists of consumer goods industry companies listed on the Indonesia Stock Exchange (IDX) during the period 2018 to 2022. This study used a purposive sampling technique with specific criteria. The samples of this study consist of 29 companies with a total of 126 observations. The analysis was carried out using a multiple linear regression approach. The results showed that earnings per share (EPS) has a positive effect on stock prices meanwhile return on equity (ROE) has a negative effect on stock prices. On the other side, inflation and interest rates do not affect stock prices.

Pengaruh Faktor – Faktor Fundamental Keuangan Terhadap Harga Saham Pada Industri Keuangan Sub Sektor Perbankan Bursa Efek Indonesia Tahun 2019 - 2020

Shares are considered to be an indicator of success in managing a banking company because share prices that have increased indicate that the company is in good condition. The closing price is the last price that appears on a company's shares before the stock exchange closes. The aim of this research is to find out how fundamental financial factors influence stock prices in the sub-banking financial industry of the Indonesian Stock Exchange. Secondary data from audited annual reports on the official IDX website, www.idx.co.id, served as the data source for this research. The research population consisted of financial industry companies in the banking sub-sector from 2019 to 2020. Sample selection was conducted using purposive sampling. Descriptive analytical methods with the SPSS version 25 program were employed for analysis, and hypothesis testing utilized the multiple linear regression method. The findings indicate that Price to Earnings Ratio (PER) and Earnings Per Share (EPS) have a significant influence on stock prices, whereas Return on Equity (ROE) and Net Profit Margin (NPM) do not. However, collectively, NPM, ROE, PER, and EPS as fundamental financial indicators have an impact on stock prices. Keywords: Stock Price, NPM, ROE, PER dan EPS