The Effect of Earning Per Share and Sales Growth on Stock Price (A Case Study on Manufacturing Companies in the Consumer Goods Sector Listed in Indonesia Stock Exchange of 2016-2018)

Authors

  • Yulisna Sijabat*, Zara Syita Kamilia, Elisabeth Rouly, Roisyiah Rahmania Saragih, Diah Andari, S.E., M.ACC., AK

Abstract

 

Fluctuating stock prices on the capital market show the performance projection of associated companies. To attract investors and achieve the targeted progress level, a company should evaluate its stock price, as in manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange. Stock price fluctuation is thought to occur due to earnings per share and sales growth that do not meet the expectation. Therefore, companies fail to attract investors to invest their funds. This study aimed to test and analyze the effect of earning per share and sales growth on stock prices on manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange of 2016-2018. The study method used was explanatory research using secondary data as the data source. Study samples were 22 companies for three periods. The study result shows that earnings per share partially significantly affected stock price, while sales growth did not affect stock prices. Simultaneously, earning per share and sales growth significantly affected stock prices. Based on the study result, it is discovered that earning per share and sales growth had a contribution to stock prices for 47.9%, while the 52.1% rest was affected by other unobserved factors

Published

2020-12-10

Issue

Section

Articles