THE EFFECT OF EARNINGS PER SHARE AND RETURN ON EQUITY ON STOCK PRICES OF COMPANIES LISTED IN THE KOMPAS 100 INDEX FOR THE 2021-2023 PERIOD

Abstract

This study aims to analyze the effect of Earnings per share (EPS) and Return on Equity (ROE) on stock prices of companies listed in the Kompas 100 index for the 2021-2023 period. The population in this study are companies included in the Kompas 100 Index listed on the IDX during the 2021-2023 period. The sample in this study were 135 companies obtained using purposive sampling technique by applying certain criteria. The data used in this study are secondary data obtained from the annual report of each company. This study uses a quantitative method with a multiple linear regression analysis approach to test the relationship between the independent variables (Earnings per share and Return on Equity) and the dependent variable (stock price).

The results showed that EPS has a significant positive effect on stock price, which indicates that an increase in EPS will increase the company's stock price. However, ROE has no significant effect on the company's stock price, which indicates that the company's equity performance in terms of profitability does not affect the movement of stock prices in the period studied.