Analysis of the Effect of Return on Equity and Earning Per Share on the Share Price of PT Kalbe Farma, Tbk With The Rupiah Exchange Rate as a Moderation Variable. (Case Study on Indonesia Stock Exchange, Period of January 2016 – June 2019)

Abstract

This research aims to determine the influence of Return on Equity and Earning per share against the price of shares with the Rupiah exchange rate as a moderation variable.  Some previous researches on stock prices showed different results. Therefore, another study needs to be done to retest the theory of the stock price.The population of this research company manufactures the pharmaceutical sector of PT Kalbe Farma. The sampling method used is the Time Series method, so that 42 months of observation (January 2016 to June 2019). The research Data is obtained from the companies downloaded from the Indonesia Stock Exchange website. The data analysis techniques used the analysis of the moderation regression and regression analysis. The process of data analysis were descriptive statistic, classic assumption test, regression analysis then testing the hypothesis. The results of this study partially show that only Earning per Share affects significantly the price of the stock, whereas Return on Equity, less influential on the stock price. The results of this research simultaneously Returm on Equity, Earning per share affect on the price of shares. Results of moderation test with Moderated Regression Analysis and pure moderated, significant rupiah exchange rate in moderating the relationship between Return on equity against stock price, also significant exchange rate in moderating the relationship between Earning per Share against stock prices.