The Influence of Earning Per Share, Price Earning
Ratio and Price to Book Value on the Jakarta stock
Price Index of Islamic company listed on the Indonesia
Stock Exchange
Ervita Safitri
1
, Abid Djazuli
2
, Darma Yanti
3
{ervitasafitri@gmail.com
1
, abid@gmail.com
2
, darmayanti@um-palembang.ac.id
3
}
Universitas Muhammadiyah Palembang
123
Abstract. This study was conducted with the aim of examining the influence of
earning per share and price earning ratio on stock price with price to book value as a
Moderation variable on the Jakarta Islamic Index company listed on the Indonesia
Stock Exchange. The data used was secondary data. The population in the study is
the Jakarta Islamic Index companies from 2014 - 2018 as many as 44 companies.
The number of research samples was 16 companies, the method used was purpose
sampling. The data collection technique used was documentation. The results of the
study showed that together or simultaneously the variable earning per share variable,
price earning ratio and price to book value variable significantly influenced stock
price. Furthermore, individually or partially variable earnings per share affect the
stock price, price earnings ratio does not affect the stock price and price to book
value affect the stock price.
Keywords: Earning Per Share, Price earning ratio, Price to Book value and Stock
price.
1. Introduction
Investment contributes to the development of a business that is run. The purpose of the
investment is to get a greater profit than what is currently invested. Investment can be in the
form of real investment or financial investment. Real investment is in the form of facilities
related to company production activities, such as land, buildings, equipment, and others.
While financial investment is only proof of company ownership, its forms such as stocks,
bonds, and other securities. To facilitate the collection of funds from people who want to
invest, we need an investment activity container called the capital market.
The capital market is the main driver of the world economy, one of which is Indonesia.
Through the capital market, companies can obtain funds to carry out their economic activities.
This is evidenced by the increasing number of companies listed on the Indonesia Stock
Exchange (IDX) in order to sell shares to investors.
Stock is an investment instrument that has been chosen by investors because stocks can
provide attractive and greater levels of profit.
According to Kasmir [15] shares are securities that are of an ownership nature. This means
that the owner of the shares which is the owner of the company. The greater the stock it has,
the greater its power in the company. One way to increase stock investment is to attract
investors to buy shares in the Jakarta Islamic Index (JII). If investment can increase, the
ICBAE 2020, August 05-06, Purwokerto, Indonesia
Copyright © 2020 EAI
DOI 10.4108/eai.5-8-2020.2301167