THE EFFECT OF EARNING PER SHARE ON STOCK RETURNS ON MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX) FOR THE 2015-2018 PERIOD

  • Hasby Hamyat
  • Asri Djauhar
  • Ramadan .
Keywords: Earning per share and stock return

Abstract

This study aims to determine the effect of earnings per share on stock returns on manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2018 period. The sample in this study were 16 manufacturing companies listed on the IDX for the 2015-2018 period. This study uses simple linear regression analysis.
The study found that earnings per share had a negative and not significant effect on stock returns. This shows that although the number of shares outstanding increases, this may not necessarily increase stock returns to investors because it is influenced by fundamental factors and market factors. The calculation results obtained coefficient of determination (R2) of 0.303. In other words, this shows that the percentage of stock return variation that can be explained by the variation of earnings per share variable is 30.3%, while the remaining 69.7% is explained by other variables outside the model.

Published
2020-08-24