THE INFLUENCE OF EARNINGS PER SHARE, DIVIDEND PAYOUT RATIO, AND DEBT TO ASSET RATIO ON STOCK PRICES

Abstract

The stock price represents the market's valuation of a company that issues specific shares. Fluctuations in stock prices are driven by market supply and demand dynamics. According to data from the Indonesian Stock Exchange, the number of listed companies on the Exchange continues to rise, each facing diverse conditions concerning their stock prices. The researcher's focus is directed toward companies experiencing stagnant or declining stock prices. Among these listed companies, including trading firms, some have witnessed stock price declines of up to 69.09% from their initial prices. The objective of this study is to examine how Earnings Per Share (EPS), Dividend Payout Ratio (DPR), and Debt to Asset Ratio (DAR) impact the stock prices of trading firms listed on the Indonesia Stock Exchange (BEI) during the period spanning from 2021 to 2022.

The study's population comprised 77 trading companies listed on the Indonesian Stock Exchange (BEI) for the period spanning 2021 to 2022. Purposive sampling was utilized as the sampling technique, resulting in the selection of 69 trading companies during the specified period. The analytical method employed is multiple linear regression, along with partial hypothesis testing utilizing the t-test, with a confidence level set at 5%.

The findings of this study indicate that decreases in Earnings Per Share (EPS) and Dividend Payout Ratio (DPR) correspond to declining stock prices, whereas an increase in Debt to Asset Ratio (DAR) is associated with decreasing stock prices. Specifically, Earnings Per Share (EPS) and Dividend Payout Ratio (DPR) exhibit a positive and statistically significant impact on stock prices, whereas the Debt to Asset Ratio (DAR) demonstrates a negative effect on stock prices.