Profitability Ratios And Influence Earning Per Share (EPS) on Stock Price On Food and Beverage Companies Go Public In the Indonesia Stock Exchange

Stefanus Wahyu Anggara, Eliya Isafaatun, SE., MM, Winanto Nawarcono, SE., MM

Abstract


The development of stock prices in the capital market is an important indicator for studying the
behavior of the market, namely investors. To determine whether investors will be trading in the
stock market, usually will base its decisions on the various instruments available in the public
and private. The data is meaningful or valuable to the investor if the data is causing make
transactions on the capital market, where transactions are reflected through share price. Financial
Accounting Standards (PSAK, 2007 No. 3) states that with the increasing number of companies
that sell securities in the capital markets, interim financial statements become increasingly
necessary. The main aspect of the interim financial reports issued by companies that report was
not audited. This will cause significant problems regarding the reliability of investment decision
makers.
To increase the level of the company's financial performance, we need a ratio analysis method
that aims to analyze the financial position of an enterprise. Ratios used to determine the ability of
firms to obtain profits in relation to sales, total assets, investment and own capital. Profitability
ratios include return on assets (ROA), Return On Equity (ROE), and Pofit Net Margin (NPM).
EPS is used to measure the success of management in achieving profitability for the company
owner. Value of ROA, ROE, NPM, and EPS increasing it will increase shareholder confidence in
the company. but each Chapter are interconnected and support each other, so that by the end of
the Chapter will be obtained a conclusion of the problem. Thesis writers are interested in
selecting food and beverage companies as an object of research in writing this essay to analyze
the increasing needs of everyday people.
Based on a discussion of profitability ratios and EPS to the stock price on 10 food and beverage
companies go public in Indonesia Stock Exchange (IDX) then it can be deduced results of
research conducted on 10 companies from 15 food and beverage companies that went public and
listed on the Stock Exchange Indonesia (BEI) that the profitability ratio has fluctuated over the
2007-2009 period with Earning Per Share (EPS) during the 2007-2009 period amounted to USD.
1229.95.

Keywords: Capital Market, Stock Exchange, Go Public

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