Profitability and its effects on share prices
Profitability and its effects on share prices
Author : ARLIN FERLINA MOCHAMAD. TRENGGANA Published on : Global Trends In Academic Research 2 (GTAR 2)
Abstract
Investors generally prefer the company trusted and have high profitability, so the purpose of this research was to look at how much influence the profitability of stock prices in a Public Bank Persero (State-Owned Enterprises The Government / SOEs). Profitability is represented by the return on assets (ROA), return on equity (ROE), and earnings per share (EPS). The data used are secondary data derived from the financial statements for the period 2009-2013. The panel data is used as a tool of analysis, with the result that the profitability of both simultaneous and partial has no effect on the stock prices, because each has a value of Prob > 0.05. The adjusted R-squared is 0,085263 which means profitability only affects 8,52% share price, while the remaining 91,48 were influenced by other factors not examined.
