The Effect of Earnings Per Share, Current Ratio, and Debt to Equity Ratio on Stock Prices Before and During the Covid-19 Pandemic with Price Earning Ratio as a Moderating Variable
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 08
Abstract
This study aims to determine the effect of earnings per share (EPS), current ratio (CR), and debt to equity ratio (DER) on stock prices with price earning ratio (PER) as a moderation variable. The data used is secondary data with a quantitative approach, where the population of health sector companies listed on the IDX is 25 companies. Using purposive sampling techniques, there were 7 companies that met the criteria, so there were 112 samples in this study. The hypothesis testing method used is multiple regression analysis and absolute difference test with the help of IBM SPSS 26. The results of this study show that EPS and PER have a positive effect on stock prices before and during the COVID-19 pandemic. CR had no effect on share prices before and during the COVID-19 pandemic. DER negatively affected stock prices before the COVID-19 pandemic, while during the COVID-19 pandemic it had no effect. PER moderated the effect of EPS on stock prices before and during the COVID-19 pandemic. PER did not moderate the effect of CR on stock prices before the COVID-19 pandemic, while for conditions during the pandemic PER moderated the influence of CR on stock prices. PER did not moderate the influence of DER before and during the COVID-19 pandemic. Overall, these results show that during the COVID-19 pandemic there were changes in investor observations of stock prices, where investors prefer factors/variables that are directly related to stock value and profit potential over other variables that are not directly related.
Authors and Affiliations
David HM Hasibuan, Muhammad Septian Rahman
Keywords
Related Articles
- EP ID EP727272
- DOI 10.47191/jefms/v6-i8-10
- Views 77
- Downloads 0
Determinants of Investment Decision Making Based on Subjective Norms, Behavioral Control, Heuristic Behavior, and Demographic Factors
This study aimed to examine the effect of subjective norms, behavioral control, heuristic behavior, educational demographic factors, occupational demographic factors, and income demographic factors on the investment deci...
Exploring the Impact of Attitudes, Behavior, and Perceptions on Millennials' Adoption of QRIS Payment Systems
In this study, we investigate the influence of attitudes, behavior, and perceptions on the adoption of Quick Response Code Indonesian Standard (QRIS) payment systems among millennials, utilizing the Mobile Technology Acc...
Effects of Foreign Direct Investment on Total Factor Productivity in CEMAC
This article aims to analyze the effects of foreign direct investment (IDE) on total factor productivity (PTF) in the Economic and Monetary Community of Central Africa (CEMAC). Using annual data for the period 1990-2020,...
The Determinants of Customer Satisfaction in Business-To-Consumer: A Multidimensional Approach Applied to Mobile Telephony Services in the Cameroonian Context
This exploration is part of a logic of continuous improvement in customer satisfaction. The aim is to determine the explanatory factors of customer satisfaction in business-to-consumer of mobile telephony services in th...
"Institutional Quality and Export Intensity of Nigerian SMEs: An Institutional-Based View using Logistic Regression Analysis"
In many developing nations, weak institutional quality presents significant hurdles for SMEs, hindering their ability to thrive in international markets due to issues like corruption, Bureaucratic red-tapeism, and unpred...