ANALYST FUNDAMENTAL FACTORS DETERMINING SHARE PRICES IN SHARIA BANKING

Authors: Neni Meidawati*, Tasya Oktaviani, Edy Anan & Amalia Siti Khodijah

ABSTRACT

This research aims to examine the factors influencing share prices in the sharia banking (TBK) sector listed on the Indonesia Stock Exchange (BEI) during the 2019-2023 period. The purposive sampling method was used in this study to obtain research data. The data used in this study consists of secondary data sourced from financial reports and quarterly reports. The independent variables in this research are the Debt-to-Equity Ratio (DER), Current Ratio (CR), Earning per Share (EPS), and Book Value per Share (BVPS), while the dependent variable is the Share Price (CP). This study uses a data sample of three sharia banking companies. For data processing and analysis, this research employs a panel data regression analysis test. The findings indicate that DER and EPS have a positive effect on Share Prices (CP), whereas CR and BVPS have no effect on Share Prices (CP). The implication of the research results is that investors do not care about the price and book value of shares, but are more concerned with information about the company’s ability to pay off short-term liabilities and earnings per share, so that companies must really manage the company’s finances in order to gain the trust of creditors and be able to generate profits by making operational efficiency of the company.

Keywords: Debt to Equity Ratio; Earnings per Share

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