FINANCIAL PERFORMANCE AND STOCK PRICES: HOW PRICE EARNING RATIO SHAPES CROSS-SECTOR RELATIONSHIPS IN THE STOCK EXCHANGE
Keywords:
financial performance, price earning ratio, stock price
Abstract
This research aims to analyze the influence of the price-earning ratio as a moderating factor on share prices on the Indonesia Stock Exchange by considering cross-sector differences. The data analysis method uses panel data multiple regression with a fixed effect model approach. Financial performance data was obtained from 72 companies listed on the Indonesia Stock Exchange for the 2018–2022 research period. The research results show that the DER variable has a significant negative effect, DAR has a significant positive effect, ROA has an insignificant positive effect, and ROE has an insignificant positive effect on stock prices. Furthermore, the results of the moderation test show that PER is unable to moderate the influence of DER on share prices. However, PER is able to moderate the influence of DAR, ROA, and ROE on share prices. The results of this research provide insight for academics and implications for policymaking in the Indonesian capital market to understand how the role of PER can influence the relationship between financial performance and share prices in the context of cross-sector companies.
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References
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Muthi'ah, S., & Chang, I. (2023). Pengaruh Profitabilitas, Leverage, dan Risiko Sistematis Terhadap Nilai Perusahaan dengan IFR sebagai Variabel Intervening. Jurnal Akuntansi dan Keuangan (JAK), 28 (1), 87-98. doi:https://doi.org/10.23960/jak.v28i1.570
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Nurhayati, I., & Endri. (2020). A New Measure of Asset Pricing: Friction-Adjusted Three-Factor Model. The Journal of Asian Finance, Economics and Business, 7 (12), 605-613. doi:https://doi.org/10.13106/jafeb.2020.vol7.no12.605
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Restanti, Y. D., Prasetya, Y. B., & Khasanah, L. A. M. (2023). The Effect of Earning Per Share, Return on Assets, Return on Equity, Debt to Equity Ratio on Stock Prices (Study on Cigarette Companies Listed on the Indonesian Stock Exchange for the Period. Journal of Economics, Finance and Management Studies, 6 (3), 1045-1051. doi:https://doi.org/10.47191/jefms/v6-i3-03
Risanti, K. A., & Murwanti, S. (2022). The Effect of Return on Asset (ROA), Return on Equity (ROE), Net Profit Margin (NPM), and Earnings Per Share (EPS) on Stock Price (Case Study in The Industry Company Sector of Consumer Goods Listed on The Indonesia Stock Exchange Period 2018-2020). Jurnal Pendidikan Tambusai, 6 (2), 10708-10717. doi:https://doi.org/10.31004/jptam.v6i2.4126
Sartono, A. (2017). Manajemen Keuangan Teori dan Aplikasi Edisi 4. Yogyakarta: Penerbit BPFE.
Suharti, & Tannia, Y. (2020). Analisis Pengaruh Debt to Equity Ratio, Debt to Asset Ratio, Price Earning Ratio dan Price to Book Value Terhadap Harga Saham pada Perusahaan Sektor Pertanian. INVEST: Jurnal Inovasi Bisnis dan Akuntansi, 1 (1), 13-26. doi:https://doi.org/10.55583/invest.v1i1.19
Supriyadi, T., & Terbuka, U. (2021). Effect of Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) on The Company’s Value in Manufacturing Companies Listed on The Exchange Indonesia Securities Year 2016-2019. International Journal of Economics, Business and Management Research, 5 (4), 219-228.
Wardoyo, D. U., Rini, A. C., & Dini, A. A. (2022). Pengaruh Intellectual Capital Terhadap Return on Assets. Jurnal Akuntansi dan Keuangan (JAK), 27 (1), 1-10. doi:https://doi.org/10.23960/jak.v27i1.350
Wayan, J. I., & Anom, P. I. B. (2020). The Effect of Financial Performance on Stock Return at Manufacturing Company of Indonesia Stock Exchange. Russian Journal of Agricultural and Socio-Economic Sciences, 97 (1), 11-19. doi:https://doi.org/10.18551/rjoas.2020-01.02
Widarjono, A. (2018). Ekonometrika Pengantar dan Aplikasi Disertai Panduan E-Views Edisi Kelima Yogyakarta: UPP STIM YKPN.
Ammy, B., & Azizah, S. (2021). The Influence of Earnings Per Share (EPS) and Return on Equity (ROE) on Stock Price with Price Earning Ratio (PER) as a Moderation Variable in Construction Sub Sector Companies and Building Listed on Indonesia Stock Exchange. International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS), 1 (2), 145-154. doi:https://doi.org/10.54443/ijebas.v1i2.41
Arisanti, P. (2022). Pengaruh Struktur Modal Terhadap Nilai Perusahaan pada Perusahaan Manufaktur di Bursa Efek Indonesia. Jurnal Akuntansi dan Keuangan (JAK), 27 (1), 24-30. doi:https://doi.org/10.23960/jak.v27i1.339
Arsal, M. (2021). Impact of Earnings Per Share and Dividend Per Share on Firm Value. ATESTASI: Jurnal Ilmiah Akuntansi, 4 (1), 11-18. doi:https://doi.org/10.33096/atestasi.v4i1.594
Baker, M., Egan, M. L., & Sarkar, S. K. (2022). How Do Investors Value ESG?. Retrieved from https://www.nber.org/papers/w30708
Basuki, A. T. (2017). Pengantar Ekonometrika (Dilengkapi Penggunaan Eviews). Yogyakarta: Danisa Media.
Basuki, A. T., & Prawoto, N. (2016). Analisis Regresi dalam Penelitian Ekonomi dan Bisnis. Jakarta: PT RajaGrafindo Persada.
Brigham, E. F., & Gordon, M. J. (1968). Leverage, Dividend Policy, and The Cost of Capital. The Journal of Finance, 23 (1), 85-103. doi:https://doi.org/10.1111/j.1540-6261.1968.tb02999.x
Chen, M., Li, N., Zheng, L., Huang, D., & Wu, B. (2022). Dynamic Correlation of Market Connectivity, Risk Spillover and Abnormal Volatility in Stock Price. Physica A: Statistical Mechanics and Its Applications, 587. doi:https://doi.org/10.1016/j.physa.2021.126506
Endri, Dermawan, D., Abidin, Z., Riyanto, S., & Manajemen, M. (2019). Effect of Financial Performance on Stock Return: Evidence From the Food and Beverages Sector. International Journal of Innovation, Creativity and Change, 9 (10), 335-350.
Harahap, I. M., Septiani, I., & Endri. (2020). Effect of Financial Performance on Firms’ Value of Cable Companies in Indonesia. Accounting, 6 (6), 1103-1110. doi:https://doi.org/10.5267/j.ac.2020.7.008
Hidayat, W., Tjaraka, H., Fitrisia, D., Fayanni, Y., Utari, W., Indrawati, M., Elan, U. (2020). The Effect of Earning Per Share, Debt to Equity Ratio and Return on Assets on Stock Prices: Case Study Indonesian. Academy of Entrepreneurship Journal, 26 (2), 1-10.
Indrianti, S. (2023). The Effect of Return on Equity and Current Ratio on Stock Prices with Price Earning Ratio as a Moderating Variable in Cement Companies Listed on the Indonesian Stock Exchange (BEI) For the Period 2018-2022. Krisnadwipayana International Journal of Management Studies, 3 (1).
Kasmiati, K., & Santosa, P. (2019). Informasi Laba, Komponen Arus Kas, Keputusan Pendanaan dan Return Saham: Empirical Evidence at Indonesia Stock Exchange (Studi pada Sektor Perdagangan, Jasa dan Investasi). Journal of Economics, Business & Accountancy Ventura, 22 (2), 157-166. doi:http://dx.doi.org/10.14414/jebav.v22i2.1638
Kennedy, P. S. J., & Sinaga, M. K. (2022). The Influence of The Intrinsic Value of Stocks on Its Market Price. Journal Image, 11 (2), 89-93. doi:https://doi.org/10.17509/image.v11i2.45928
Kowaup, H. N., & Herdjiono, I. (2021). Pengaruh Indikator Fundamental Pasar Terhadap Struktur Modal. Jurnal Akuntansi dan Keuangan (JAK), 26 (2), 118-127. doi:https://doi.org/10.23960/jak.v26i2.265
Krylov, S. (2018). Target Financial Forecasting as an Instrument to Improve Company Financial Health. Cogent Business & Management, 5 (1), 1-42. doi:https://doi.org/10.1080/23311975.2018.1540074
Lana, A., & Oktorina, M. (2024). Pengaruh Enterprise Risk Management Terhadap Nilai Perusahaan dengan Pengungkapan Laporan Keberlanjutan sebagai Variabel Mediasi. Jurnal Akuntansi dan Keuangan (JAK), 29 (1), 17-27. doi:https://doi.org/10.23960/jak.v29i1.1249
Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment. The American economic review, 48 (3), 261-297.
Muthi'ah, S., & Chang, I. (2023). Pengaruh Profitabilitas, Leverage, dan Risiko Sistematis Terhadap Nilai Perusahaan dengan IFR sebagai Variabel Intervening. Jurnal Akuntansi dan Keuangan (JAK), 28 (1), 87-98. doi:https://doi.org/10.23960/jak.v28i1.570
Myers, S. C. (1984). Capital Structure Puzzle. Retrieved from https://www.nber.org/papers/w1393
Napitupulu, R. B., Simanjuntak, T. P., Hutabarat, L., Damanik, H., Harianja, H., Sirait, R. T. M., & Lumban Tobing, C. E. R. (2021). Penelitian Bisnis, Teknik dan Analisa dengan SPSS-STATA-Eviews. Medan: Madenatera.
Nenu, E. A., Vintila, G., & Gherghina, S. C. (2018). The Impact of Capital Structure on Risk and Firm Performance: Empirical Evidence for the Bucharest Stock Exchange Listed Companies. International Journal of Financial Studies, 6 (2), 1-29. doi:https://doi.org/10.3390/ijfs6020041
Nurhayati, I., & Endri. (2020). A New Measure of Asset Pricing: Friction-Adjusted Three-Factor Model. The Journal of Asian Finance, Economics and Business, 7 (12), 605-613. doi:https://doi.org/10.13106/jafeb.2020.vol7.no12.605
Raut, R. K. (2020). Past Behaviour, Financial Literacy and Investment Decision-Making Process of Individual Investors. International Journal of Emerging Markets, 15 (6), 1243-1263. doi:https://doi.org/10.1108/IJOEM-07-2018-0379
Reilly, F. K., & Brown, K. C. (2012). Analysis of Investments & Management of Portfolios. Florida: South-Western Cengage Learning.
Restanti, Y. D., Prasetya, Y. B., & Khasanah, L. A. M. (2023). The Effect of Earning Per Share, Return on Assets, Return on Equity, Debt to Equity Ratio on Stock Prices (Study on Cigarette Companies Listed on the Indonesian Stock Exchange for the Period. Journal of Economics, Finance and Management Studies, 6 (3), 1045-1051. doi:https://doi.org/10.47191/jefms/v6-i3-03
Risanti, K. A., & Murwanti, S. (2022). The Effect of Return on Asset (ROA), Return on Equity (ROE), Net Profit Margin (NPM), and Earnings Per Share (EPS) on Stock Price (Case Study in The Industry Company Sector of Consumer Goods Listed on The Indonesia Stock Exchange Period 2018-2020). Jurnal Pendidikan Tambusai, 6 (2), 10708-10717. doi:https://doi.org/10.31004/jptam.v6i2.4126
Sartono, A. (2017). Manajemen Keuangan Teori dan Aplikasi Edisi 4. Yogyakarta: Penerbit BPFE.
Suharti, & Tannia, Y. (2020). Analisis Pengaruh Debt to Equity Ratio, Debt to Asset Ratio, Price Earning Ratio dan Price to Book Value Terhadap Harga Saham pada Perusahaan Sektor Pertanian. INVEST: Jurnal Inovasi Bisnis dan Akuntansi, 1 (1), 13-26. doi:https://doi.org/10.55583/invest.v1i1.19
Supriyadi, T., & Terbuka, U. (2021). Effect of Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) on The Company’s Value in Manufacturing Companies Listed on The Exchange Indonesia Securities Year 2016-2019. International Journal of Economics, Business and Management Research, 5 (4), 219-228.
Wardoyo, D. U., Rini, A. C., & Dini, A. A. (2022). Pengaruh Intellectual Capital Terhadap Return on Assets. Jurnal Akuntansi dan Keuangan (JAK), 27 (1), 1-10. doi:https://doi.org/10.23960/jak.v27i1.350
Wayan, J. I., & Anom, P. I. B. (2020). The Effect of Financial Performance on Stock Return at Manufacturing Company of Indonesia Stock Exchange. Russian Journal of Agricultural and Socio-Economic Sciences, 97 (1), 11-19. doi:https://doi.org/10.18551/rjoas.2020-01.02
Widarjono, A. (2018). Ekonometrika Pengantar dan Aplikasi Disertai Panduan E-Views Edisi Kelima Yogyakarta: UPP STIM YKPN.
Published
2025-01-30
How to Cite
Basri, B., Irnandas, M., & Herianti, H. (2025, January 30). FINANCIAL PERFORMANCE AND STOCK PRICES: HOW PRICE EARNING RATIO SHAPES CROSS-SECTOR RELATIONSHIPS IN THE STOCK EXCHANGE. Jurnal Akuntansi Dan Keuangan (JAK), 30(1), 23-32. https://doi.org/https://doi.org/10.23960/jak.v30i1.3542
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