The Influence of Earnings Per Share and Return On Investment on Stock Prices in The Banking Sector Listed on IDX

Read full text
Authors: Intan Sari Budhiarjo, Iriana Kusuma Dewi
Cited by: 0

Abstract

This study aims to examine the effect of Earnings Per Share (EPS) and Return on Investment (ROI) on stock prices in the banking sector listed on the Indonesia Stock Exchange. A quantitative approach is employed using secondary data from published financial statements. The sample consists of six banking companies selected from a population of 46 firms based on predetermined criteria. Data analysis includes descriptive statistics, panel data regression, hypothesis testing, and the coefficient of determination. The results show that EPS does not have a significant partial effect on stock prices, while ROI has a significant positive effect. Simultaneously, EPS and ROI significantly influence stock prices, indicating that profitability indicators play an important role in explaining stock price movements in the Indonesian banking sector.

Fields of Study & Subjects

Financial Analysis and Corporate Governance Corporate Governance and Financial Management Financial Reporting and Valuation Research

Publication details

Journal / source
Indonesian Financial Review
Volume
5
Issue
2
Pages
499–515
Publication date
13 January 2026