The Influence of Profitability, Earnings per Share, Leverage, and Share Price on Stock Return

Abstract

Purpose: This study was conducted to determine the effect of Profitability, Earnings Per Share, Leverage, and Stock Price on Stock Returns in mining sector companies listed on the Indonesia Stock Exchange from 2016 to 2019. Methods: This research is associative, using panel data regression as a decision-making tool. The sample amounted to 13 mining sector companies selected based on the purposive sampling method. Findings: Based on the test results, the price-to-earnings ratio has a significant positive effect on stock returns. Profitability and Earnings Per Share have a positive but insignificant effect, while Leverage has a negative and insignificant effect. Practical Implications: Investors in the mining sector are advised to focus on the price-to-earnings ratio, as it significantly influences stock returns. While profitability, Earnings Per Share, and leverage are considered important, they do not have a meaningful impact. Therefore, analyzing the Price-to-Earnings Ratio is considered crucial to improving investment returns. Keywords: Profitability, Earnings Per Share, Leverage, Share Price, Stock Return Purpose: This study was conducted to determine the effect of Profitability, Earnings Per Share, Leverage, and Stock Price on Stock Returns in mining sector companies listed on the Indonesia Stock Exchange from 2016 to 2019. Methods: This research is associative, using panel data regression as a decision-making tool. The sample amounted to 13 mining sector companies selected based on the purposive sampling method. Findings: Based on the test results, the price-to-earnings ratio has a significant positive effect on stock returns. Profitability and Earnings Per Share have a positive but insignificant effect, while Leverage has a negative and insignificant effect. Practical Implications: Investors in the mining sector are advised to focus on the price-to-earnings ratio, as it significantly influences stock returns. While profitability, Earnings Per Share, and leverage are considered important, they do not have a meaningful impact. Therefore, analyzing the Price-to-Earnings Ratio is considered crucial to improving investment returns.