THE EFFECT OF RETURN ON EQUITY (ROE) AND EARNING PER SHARE (EPS) ON FINANCIAL LEVERAGE IN PT. PIONEERINDO GOURMENT, TBK

Abstract

The object of the research used is PT Pioneer Pioneer Gourment, Tbk, which is classified in a manufacturing company listed on the Stock Exchange in the period 2008 to 2010. The research data is based on financial report data for the period 2009-2010. The financial statements used in this study are position reports. company finance, income statement, notes to financial statements, and closing market price data (closing price) issued by the Indonesia Stock Exchange (IDX). The variables used in this study are Financial Leverage, Earning Per Share and Return On Equity Earning Per Share (EPS) PT. Pioneerindo Gourment International, Tbk in 2008: 2.97 and in 2009: 3.90 and in 2010: 4.27. The lowest Ln EPS value is 1.07, and the highest value is 9.95. While the average value of Ln EPS is 5.0159. This shows that on average each sample company provides a share of earnings (Ln EPS) of 5.0159 from profits earned by the company. stock returns (Ri) in 1 classified company in a manufacturing company listed on the Indonesia Stock Exchange (IDX) for the period 2008 to 2010 have the highest value of 0.04% and the lowest value is -0.09%, while the average of stock returns (Ri ) This is 0.0025%. This implies that the average investment in shares of 1 company generally produces a loss of 0.0025% of the amount of investment made by investors.

The constant coefficient based on the regression results is 0.009, this means that Y (stock return) will be 0.009 if the Return On Equty (ROE), Detb to Equity Ratio (DER) and Earning Per Share (EPS) are 0 or constant. Earnings Per Shares (EPS) has a regression coefficient of (-0.004), stating that every 1% increase in EPS (assuming that the other variable coefficient values are constant or unchanged), will result in a decrease in stock returns of 0.004 or 0.4%. The coefficient is negative, meaning there is a negative relationship between EPS and stock returns, the higher the EPS, the lower the stock return. The value of R Square (R2) is 0.141. This means that the effect of Return On Equity (ROE) and Earning Per Share (EPS) on financial leverage is 14.1% while the rest (100% - 14.1%) is 85.9% which may be influenced by other factors, such as fundamental information and technical information.

Keywords: Return On Equity (Roe) And Earning Per Share (Eps) On Financial Leverage In PT. Pioneerindo Gourment