THE EFFECT OF EARNING PER SHARE AND RETURN ON EQUITY ON STOCK PRICE (STUDY ON LISTED BANKS)

Abstract

Banking is an important industry in supporting the overall development financing program both as a fundraiser, as an investment and working capital financing institution as well as an institution that channel funds to people who are underfunded. Stock prices are important for investors because they will determine the amount of investor wealth. Investors are willing to buy shares at a certain price if they get more benefits or results than the sacrifices they have made. The data of the sample drawn from financial statements in period of 2006 to 2009 which make total observed data is 40. This study finds that partially EPS and ROE variables affect stock prices which can be seen in the results of the t test.