Effect of Earning Per Shares (EPS) and Return On Assets (ROA) against Share Price on Coal Mining Company Listed in Indonesia Stock Exchange

Abstract

One of the main indicators is the reference of the feasibility of detecting an investor in the stock market investment is the company's profit. Profit can be reflected by the level of EPS or ROA. Generally, an increase in EPS and ROA index will be linear with the increase in stock price. The purpose of this study is to demonstrate empirically the relationship and influence of EPS and ROA on stock prices. The data used in this study is the use of panel data methods and Opportunity Sampling is done by comparing the regression model (1) Ordinary Least Square (common effect), (2) Efek Tetap (Fixed Effects), (3) Efek Random (Random Effect) . Of the three models obtained the best model is Fixed Effect.The results of this study indicate that EPS and ROA has a positive relationship to the stock price and simultaneously significantly affect stock prices. However, the EPS only partial test that showed a significant effect, whereas ROA is not.

Keywords: Earning Per Shares (EPS), Return on Assets (ROA), Stock price