PENGARUH RETURN ON ASSET, DEBT TO EQUITY RATIO, EARNING PER SHARE TERHADAP NILAI PERUSAHAAN

Abstract

This research aimed to examine and analyze the effect of Return On Asset (ROA), Earning Per Share (EPS), Debt to Equity Ratio (DER) on firm value (PBV). While the research was quantitative. Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with that, there were 38 samples from 7 mining companies which were listed on Indonesia Stock Exchange during 2015-2020. Furthermore, the data analysis technique used multiple linear regression with SPSS 21.The research result concluded that as follows: (1) ROA had a negative effect on firm value. The lower the ROA was, the higher the firm value would be. This meant, companies which had an unwell asset return could increase their value as there were other factors affected; (2) EPS had a positive effect on firm value. The higher the EPS was, the better the companies in having profits. Therefore, investors would be interested in; (3) DER did not affect firm value as debts could be used in earning operational activities and companies’ development. This would become a consideration for investors in investing their money.
Keywords: return on asset, earning per share, debt to equity ratio, firm value