LQ-45 Index Companies Listed on the BEI: An Examination of the Impact of EVA, ROA, and EPS on Stock Return Shares

• Author(s): Hanifa Sri Nuryani ; Denny Hambali
• Paper ID: 1705277
• Page: 85-91
• Published Date: 11-12-2023
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 7 Issue 6 December-2023

Abstract

The objective of this study is to ascertain the impact of economic value added (EVA), return on assets (ROA), and profits per share (EPS) on stock returns in companies listed on the LQ-45 index of the Indonesia Stock Exchange during the period from 2018 to 2022. This study employs multiple linear regression analysis with the Ordinary Least Square approach. The data analysis reveals a strong and statistically significant correlation between Economic Value Added (EVA), Return On Assets (ROA), and Earnings Per Share (EPS) with Stock Returns. Economic Value Added (EVA), a metric that quantifies the excess value generated above the cost of capital, demonstrates a direct correlation between an augmentation in this surplus and an elevation in stock returns. Return on assets (ROA), a metric used to assess asset efficiency, demonstrates that companies with greater asset productivity typically yield superior stock returns. EPS, or earnings per share, exhibits a direct correlation with stock returns, whereby a rise in EPS translates to heightened returns for investors.

Keywords

Economic Value Added (EVA), Return On Assets (ROA), Earnings Per Share (EPS), Return Saham.

Citations

IRE Journals:
Hanifa Sri Nuryani , Denny Hambali "LQ-45 Index Companies Listed on the BEI: An Examination of the Impact of EVA, ROA, and EPS on Stock Return Shares" Iconic Research And Engineering Journals Volume 7 Issue 6 2023 Page 85-91

IEEE:
Hanifa Sri Nuryani , Denny Hambali "LQ-45 Index Companies Listed on the BEI: An Examination of the Impact of EVA, ROA, and EPS on Stock Return Shares" Iconic Research And Engineering Journals, 7(6)