International Journal of Health, Economics, and Social Sciences (IJHESS)
Vol 3, No 1 (2021): January

The Effect of Price Earning Ratio on Market Performance in Banking Companies on the Indonesia Stock Exchange

Rajindra, Rajindra (Unknown)



Article Info

Publish Date
15 Jan 2021

Abstract

This study aims to determine and analyze the effect of Price Earning Ratio on market performance in banking companies on the Indonesia Stock Exchange. The sampling method based on the purposive sampling method, there are 14 banking companies that meet the requirements and as a sample in this study using a simple regression analysis tool. The results of the study show that the variable Price Earning Ratio (PER) has no significant positive effect on Market Performance, this situation illustrates that Price to Earning Ratio (PER) is one of the company's financial ratios that can influence stock prices more dominantly than EPS. Companies that have a high PER value will attract investors to buy shares. So that the demand for these shares will increase, this will push the stock price to rise. Therefore, it can be concluded that the higher the PER, the higher the level of investor confidence in the company's future, seen from the company's growth, it will push the stock price up.

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Journal Info

Abbrev

IJHESS

Publisher

Subject

Economics, Econometrics & Finance Public Health Social Sciences

Description

nternational Journal of Health, Economics, and Social Sciences (IJHESS) is a peer-reviewed electronic international journal. This statement clarifies ethical behaviour of all parties involved in the act of publishing an article in this journal, including the author, the chief editor, the Editorial ...