Earnings per Share and the Problem: Sub Sector Food and Beverage Companies on the Indonesia Stock Exchange
1Hendrawati,2Yolanda,
3Wahyu Murti, 4Arni Kurniati,
5Muslim Kamil, 6Rupa Melati
1Postgraduate Student of Stara 3 Economics, Borobudur University, Jakarta Indonesia
2,3,4,5Lecturers University of Borobudur, Jakarta, Indonesia
6Student Faculty Economic of Borobudur University, Jakarta, Indonesia
https://doi.org/10.47191/jefms/v5-i9-35ABSTRACT:
The goal of this study is to assess the impact of Return on Asset, Debt Equity Ratio, Current Ratio, and inflation on Earnings Per Share for Indonesia Stock Exchange-listed food and beverage companies. Purposive Sampling was used to collect samples for this study from six Food and Beverage Companies that are publicly traded on the Indonesia Stock Exchange.. The study employs balanced panel data from 2011 to 2020 to obtain generalizable results. The Eviews 12 application is used for data processing. The findings of this study reveal that Earnings Per Share, at the same time, Return on Assets, Debt to Equity Ratio, Current Ratio, and Inflation all have a favorable and significant impact. Shares of earnings and return on assets, current ratio, and inflation are some examples.
KEYWORDS:
Earnings Per Share, Return On Assets, Debt To Equity Ratio, Current Ratio and Inflation
REFERENCES:
1) Abdul Rahman Shaik and Raj Bahadur Sharma (2021), Leverage, capital and profitability of the banks: Evidence from
Saudi Arabia, Accounting 7 p. 1363–1370.
2) Aremi Evanta Br. Tarigan, Rasinta Ria Ginting, Yusuf Ronny Edward (2021), The Effect Of Debt-To-Equity Ratio And
Current Ratio On Earnings Per Share Moderated By Return On Equity International Journal Of Business, Economics And
Law, Vol. 24, Issue 6, p. 125-128.
3) Brigham, E. F., & Houston, J. F. (2010). Fundamentals of financial management (11th ed.). Jakarta: Salemba Empat.
4) Citra Larasati, Abdul Rivai, Suharto (2020), Effect of Debt to Equity Ratio and Return on Assets on Earnings per Share
with Firm Value as a Moderating Variable in Various Industrial Sub-Sector Manufacturing Companies Indonesia ,Asian
Business Research Journal, Vol. 5. p. 39-47.
5) Chioma Dorothy Oleka, Eyisi Adanma Sabina and M.I. Ebue (2015), Relationship Between Inflation and Firms'
Performance-Evidence from Nigeria , World Applied Sciences Journal 33 (5), p. 814-822
6) Dyah Purnamasari (2015), The Effect of Changes in Return on Assets, Return on Equity, and Economic Value Added to
the Stock Price Changes and Its Impact on Earnings Per Share, Research Journal of Finance and Accounting, Vol.6, No.6,
2015, p. 80-90.
7) Efuntade, Alani Olusegun, Efuntade, Olubunmi Omotayo, Akinola, Akinwumi Olusegun (2019), Capital Structure and
Earnings per Share in Listed Conglomerates in Nigeria , European Journal of Accounting, Auditing and Finance Research
Vol.7, No.8.p. 49-58.
8) Famil Şamiloğlu, Ali Osman Öztop, Yunus Emre Kahraman (2017), The Determinants of Firm Financial Performance:
Evidence From Istanbul Stock Exchange (BIST), IOSR Journal of Economics and Finance (IOSR-JEF), Volume 8, Issue 6 Ver.
I (Nov.- Dec .2017), PP 62-67.
9) Jhvh De Wet (2013), Earnings Per Share As A Measure Of Financial Performance: Does It Obscure More Than It Reveals,
Corporate Ownership & Control / Volume 10, Issue 4, p. 265-275.
10) Kaniz Habiba Afrin and Mohammad Shofiqul Islam (2019) , Earnings per Share: Do We Get Relevant Information?,
Chinese Business Review, , Vol. 18, No. 2, p. 22-29 .
11) Cashmere. (2016). Financial Statement Analysis. Jakarta: Rajawali Press.
12) Khalaf Taani and Mari'e Hasan Hamed Banykhaled (2011), The Effect Of Financial Ratios, Firm Size And Cash Flows From
Operating Activities On Earnings Per Share: (An Applied Study: On Jordanian Industrial Sector) International Journal Of
Social Sciences And Humanity Studies Vol 3, No 1, p. 197-205.
13) Maryam Alhani Fumani and Dr. Abdolkarim moghadam (2015, The Effect of Capital Structure on Firm Value , The Rate
of Return on Equity and Earnings Per Share of Listed Companies inTehran Stock Exchange , Research Journal of Finance
and Accounting, Vol.6, No.15p. 50-58.
14) Mahfuzah Salim and Dr.Raj YadavNilai (2012), Capital Structure and Firm Performance: Evidence fromMalaysian Listed
Companies, Procedia - Social and Behavioral Sciences 65 ,p. 156 – 166.
15) Md. Rashidul Islam, Tahsan Rahman Khan, Tonmoy Toufic Choudhury3, and Ashique Mahmood Adnan (2014), How
Earning Per Share (EPS) Affects on Share Price and Firm Value, European Journal of Business and Management, Vol.6,
No.17, p. 98-109
16) Md. Bokhtiar Hasan1 , A. F. M. Mainul Ahsan2 , Md. Afzalur Rahaman3 & Md. Nurul Alam (2014), Influence of Capital
Structure on Firm Performance: Evidence from Bangladesh, International Journal of Business and Management; Vol. 9,
No. 5, p. 184-194.
17) Natasha Robbetze, Rikus de Villiers, Lana Harmse (2017), The Effect Of Earnings Per Share Categories On Share Price
Behaviour: Some South African Evidence, The Journal of Applied Business Research, Volume 33, Number 1, p. 141-152.
18) Nassar S (2016), The impact of capital structure on Financial Performance of the firms: Evidence From Borsa Istanbul,
Journal of r u o J Business & Financial Affairs, Volume 5 • Issue 2.
19) Nugi Mohammad Nugraha, Bulan Tati Fitria, DevyMawarnie Puspitasari, Evie Damayanti , Does Earning Per Share (Eps)
Affected By Debt To Asset Ratio (Dar) And Debt To Equity Ratio (Der)? , Palarch's Journal Of Archaeology Of
Egypt/Egyptology 17(10).
20) Piotr Prewysz-Kwinto and Grażyna Voss (2017), Earning Per Share Under International Accounting Regulations and
Based on the Example of Companies Listed on the Warsaw Stock Exchange , European Journal of Economics and
Business Studies, Volume 3, Issue 2, p. 57-64.
21) R. Bratamanggala (2018), Factors Affecting Earning Per Share: The Case of Indonesia, International Journal of Economics
and Business Administration Volume VI, Issue 2. p. 92-100.
22) Rina, Gafar Samalam and Feronica Fungky Muchsidin (2021). The Factors That Affect Stock Pricesin Manufacturing
Industrial Companies Listed on IDX, Point of View Research Management 2(2), p.94-103.
23) Saputra Imanuel Sebrian Dwi and Wardayo (2019), Analysis Of The Effect Of Return On Assets, Earnings Per Share,
Inflation Rate, And Interest Rate On Stock Return: A Case StudyOf Soe Banking Companies Listed In Indonesia Stock
Exchange, Russian Journal of Agricultural and Socio-Economic Sciences, 1(85), p.24-34.
24) Shukairi Nori Musa Dr and Issa Ahmad Al-Swiety Dr (2017), The Prediction of Earnings per Share through the Models of
Random Walk and Random Walk with Drift: A Case Study of Jordan, International Journal of Managerial Studies and
Research (IJMSR)Volume 5, Issue 2, P 56-64.
25) Sumarni, Syaiful, Andreas CH and, Yolanda (2022), Determinant Share Price Of Cement Sub-SectorCompanies On The
Indonesia Stock Exchange (IDX), IOSR Journal of Economics and Finance (IOSR-JEF), Volume 13, Issue 2 Ser. VI, PP 30-37
26) Trisanti T (2021), The Impact of Fundamental Factors on Stock Price with Inflation as Mediating Variable:Evidence
Indonesian Listed Manufacturing Companies, Global Journal of Arts and Social Sciences, Volume 3 Issue 1, p. 1-8.
27) Yolanda(2017), Capital Adequacy Ratio And Its InfluencingFactors On The Islamic Banking In Indonesia, Journal of
Islamic Economics and Business (EKONOMICKA) Volume 2, No. 2, p. 162 –176.
28) Yolanda and Sumarni (2018), Financial Performance And Factors Influencing Its Banking Companies In Indonesia Stock
Exchange, Russian Journal of Agricultural and Socio-Economic Sciences ( RJOAS), 3(75), p. 63-72.
29) Yolanda, Syaiful, Liestyowati, Thomas Berllind R (2022), Company's financial factors and stock priceson the Indonesia
Stock Exchange(Case study of LQ 45 index), American Journal of Multidisciplinary Research & Development (AJMRD)
Volume 04, Issue 07 (July - 2022), p.09-17