THE IMPACT OF DEBT TO EQUITY RATIO, PRICE EARNING RATIO, EARNING PER SHARE TO THE STOCK PRICE ON BANKING SECTORS LISTED IN INFOBANK15 INDEX 2014- 2018 – AJHSSR

THE IMPACT OF DEBT TO EQUITY RATIO, PRICE EARNING RATIO, EARNING PER SHARE TO THE STOCK PRICE ON BANKING SECTORS LISTED IN INFOBANK15 INDEX 2014- 2018

THE IMPACT OF DEBT TO EQUITY RATIO, PRICE EARNING RATIO, EARNING PER SHARE TO THE STOCK PRICE ON BANKING SECTORS LISTED IN INFOBANK15 INDEX 2014- 2018

ABSTRACT :The aims of this study are to determine the effect of debt to equity ratio, price earnings ratio,earnings per share on stock prices. This research was conducted in the banking sector companies listed in theInfoBank15 index in 2014-2018. The sampling technique that used in this study was purposive sampling.Samples obtained as many as 30 financial statements from 6 companies. Based on the results of this study usingmultiple linear regression analysis techniques, the price earnings ratio and earnings per share have a positive andsignificant impact on the price of shares, the higher price earning ratio, the offer of the shares of a company willcontinue increasing as a sign that the company is able to increase their value by increasing their price of sharescontinuously. Also, a high earnings per share can be a sign that the company is able to increase their value witha high dividend. On the other side, Debt to equity ratio has no impact on shares’ price.

Keywords:debt to equity ratio, price earnings ratio, earnings per share, stock price, InfoBank15 index