1475-Article Text-3874-1-10-20201217
1475-Article Text-3874-1-10-20201217
1475-Article Text-3874-1-10-20201217
3/ December 2020
ISSN 2579-4892 print/ ISSN 2655-8327 online
THE EFFECT OF NET PROFIT MARGIN AND EARNING PER SHARE ON SHARE
PRICES
Abstract: The net profit margin is a financial ratio in measuring a company's ability to
generate a return on sales. Earning per share is a financial ratio that shows the profit
from each outstanding share. The share price is the price of the company's shares
listed and can change every second. The purpose of this study is to determine the
influence of net profit margin on stock prices and to determine the magnitude of the
influence of earnings per share on stock prices. This research was conducted at Food
and Beverage Sub-Sector Manufacturing Companies listed on the Indonesia Stock
Exchange (BEI) for the 2014-2018 period. The results in this study found that: 1) The t
value of the net profit margin of 5.378 is greater than the t table of 2.00665 and the
significant value of 0.000 is less than 0.05, it can be concluded that the net profit
margin has a significant effect on stock prices; 2) It is obtained that the t value of
earning per share is 3.349 which is greater than the t table of 2.00665 and a significant
value of 0.002 is less than 0.05, so it can be concluded that earning per share has a
significant effect on stock prices.
Keywords: Net Profit Margin, Earning Per Share, Stock Price
The sub-sectors that experienced the highest growth in the fourth quarter of 2017
(Gareta 2017) are as follows:
Coefficientsa
Model Collinearity Statistics
Tolerance VIF
Net Profit Margin ,856 1,169
Earning Per ,856 1,169
Share
a. Dependent Variable: Stock Price
Model Summary
Model R R Adjusted Std. Error of Durbin-
Square R the Estimate Watson
Square
1 740a .548 .530 2647,952027 1,834
Source: Data processing using SPSS
Coefficientsa
Model Unstandardized Standardiz t Sig.
Coefficients ed
Coefficient
s
B Std. Error Beta
1 (Constant) 338 579,017 ,584 ,562
,03
1
Net Profit 223 4160,370 ,542 5,378 ,000
Margin 75,
070
Earning 5,2 1,575 ,338 3,349 ,002
Per Share 76
a. Dependent Variable: Stock Price
Model Summaryb
Adjusted R Std. Error of Durbin-
Model R R Square Square the Estimate Watson
1 ,740a ,548 ,530 2647,952027 ,855
a. Predictors: (Constant), Earning Per Share, Net Profit Margin
b. Dependent Variable: Stock price
Source: Data processing using SPSS
From Table 6 above, it is known that explained by other variables outside the
the value of KD = 0.7402 x 100% = regression model.
54.8%, which means that the
independent variables, namely net Hypothesis T-Test
profit margin and earnings per share, This test is used to test the
explain the dependent variable share significance of the effect between the
price of 54.8%. While the remaining independent variable (X) on the
45.2% (from 100% - 54.8%) is dependent variable (Y) and to test the
predetermined hypothesis, as follows:
Coefficientsa
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) 338 579,017 ,584 ,562
,03
1
Net Profit 223 4160,370 ,542 5,378 ,000
Margin 75,
070
Earning 5,2 1,575 ,338 3,349 ,002
Per Share 76
a. Dependent Variable: Stock Price
Source: Processing using SPSS
From the table above the results of t the dependent or dependent variable
count the net profit margin of 5.378, used is Stock Price, the sample used in
while t count the profit per share of this study is 11 Food and Beverage
3.349. Sub-Sector Manufacturing Companies
In the t distribution table, the t- listed on the Indonesia Stock Exchange
table value is 2.0066. The basis for in 2014-2018. Based on the results of
making decisions, namely: the research and discussion that has
If t-count> t-table, it is significant, been carried out, the following
the hypothesis which states that conclusions are drawn: Net Profit
the independent variable Margin has an effect on Stock Prices in
individually affects the dependent Manufacturing Companies in the Food
variable is accepted and Beverage Sub-Sector listed on the
If t-count <t-table, it is not Indonesia Stock Exchange (BEI) for the
significant, the hypothesis that the 2014-2018 period. When the Net Profit
independent variable individually Margin increases, the Share Price also
affects the dependent variable is increases, and vice versa, if the Net
rejected Profit Margin decreases, the Share
Price decreases, which means that
From the t-count, the net profit there is a direct influence between the
margin of 5.378 is greater than the t- Net Profit Margin and the Share Price.
table with a value of 2.0066 and a Earning Per Share affects Share Prices
significant value of 0.000 <0.05. Then in Food and Beverage Sub Sector
H1 is accepted and it can be concluded Manufacturing companies listed on the
that the net profit margin has a Indonesia Stock Exchange (BEI) for the
significant effect on stock prices. 2014-2018 period. When Earning Per
Furthermore, the t-count of Share has increased, the Stock Price
earnings per share of 3.349 is greater has also increased, and vice versa, if
than the t-table with a value of 2.0066 Earning Per Share has decreased, the
and a significant value of 0.002 <0.05. share price has decreased, which
So H2 is accepted and it can be means there is a direct influence
concluded that earning per share has a between Earning Per Share and the
significant effect on stock prices. Share Price.
CONCLUSION REFERENCES
In this study the independent or Darmadji & Fakhruddin. (2011). Pasar
independent variables used are Net Modal di Indonesia Edisi 3.
Profit Margin and Earning Per Share, Jakarta: Salemba Empat