The influence of debt equity ratio and times interest earned ratio through return on assets on banking companies’ share price

Authors

  • Sandika Utama Universitas Tanjungpura, Indonesia
  • Bintoro Bagus Purmono Universitas Tanjungpura, Indonesia
  • Helma Malini Universitas Tanjungpura, Indonesia
  • Mustarudin Mustarudin Universitas Tanjungpura, Indonesia
  • Wendy Wendy Universitas Tanjungpura, Indonesia

DOI:

https://doi.org/10.35335/ijafibs.v11i3.177

Keywords:

Financial Performance, Return, Share Price, Solvency

Abstract

The financial performance of a company significantly influences its valuation, reflected in share prices and serving as a comprehensive measure of overall health and profitability. This research delves into the intricate interplay of microeconomic and macroeconomic environments on a company's performance, focusing on the Debt Equity Ratio (DER) and Times Interest Earned (TIE) as key determinants of stock prices in banking institutions. The mediating role of Return On Assets (ROA) is considered in this analysis. Employing the multiple regression statistical method, the study aims to reveal the relationships between independent and dependent variables while accommodating intervening variables. The objective is to present empirical data supporting formulated hypotheses, providing valuable insights into the financial dynamics of banking institutions.

References

Andriani. (2020). Hartono. 4(1).

Angellia et al. (2018). cdatu,+82.Novilia. 13(4).

Avistasari et al. (2020). BAB II TINJAUAN PUSTAKA 2.1 Landasan Teori 2.1.1 Manajemen Keuangan 2.1.1.1 Pengertian Manajemen Keuangan.

Candra et al. (2021). Syamsudin. 13(2).

Catherine, L., Kusmana, A., & Pembangunan Nasional Veteran Jakarta, U. (2020). DETERMINAN KINERJA KEUANGAN BANK UMUM BUKU III DI INDONESIA. In PROSIDING BIEMA Business Management, Economic, and Accounting National Seminar (Vol. 1).

Dewi, N. S., & Suwarno, A. E. (2022). PENGARUH ROA, ROE, EPS DAN DER TERHADAP HARGA SAHAM PERUSAHAAN (Studi Empiris pada Perusahaan LQ45 yang Terdaftar di Bursa Efek Indonesia Tahun 2016-2020). Seminar Nasional Pariwisata Dan Kewirausahaan (SNPK), 1.

Erlian, V., Daulat Tambun, H., & Id, V. C. (2019a). PENGARUH FIXED ASSETS TURNOVER, QUICK RATIO DAN TIMES INTEREST EARNED TERHADAP RETURN ON ASSET PADA PERUSAHAAN SUB SEKTOR PROPERTY DAN REAL ESTATE YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2013-2017 E-Mail. In JURNAL DARMA AGUNG: Vol. XXVII (Issue 2). www.kanalsatu.com

Erlian, V., Daulat Tambun, H., & Id, V. C. (2019b). PENGARUH FIXED ASSETS TURNOVER, QUICK RATIO DAN TIMES INTEREST EARNED TERHADAP RETURN ON ASSET PADA PERUSAHAAN SUB SEKTOR PROPERTY DAN REAL ESTATE YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2013-2017 E-Mail. In JURNAL DARMA AGUNG: Vol. XXVII (Issue 2). www.kanalsatu.com

Estininghadi, S., Pgri, S., & Jombang, D. (2019). Pengaruh Current Ratio , Debt Equity Ratio, Total Assets Turn Over Dan Net Profit Margin Terhadap Pertumbuhan Laba (Vol. 2, Issue 1). https://ejournal.stiedewantara.ac.id/index.php/JAD/issue/view/42

Farah, I., Amin, C., & Pramudianto, P. (2021). The Effect of Debt To Asset Ratio, Long Term Debt To Equity Ratio and Time Interest Earned Ratio on Profitability. BINA BANGSA INTERNATIONAL JOURNAL OF BUSINESS AND MANAGEMENT, 1(1), 68–78. https://doi.org/10.46306/bbijbm.v1i1.8

Fathanah Radiyyah, A., Aslami Universitas Islam Negeri Sumatera Utara, N., Jl William Iskandar Psr, M. V, Estate, M., Percut Sei Tuan, K., & Deli Serdang, K. (2022). Strategi dan Praktik Manajemen Perbankan Syariah.

Fitriyah, S., & Fauzan, S. (2020). The Effect of Corporate Governance and Financial Health on The Value of Companies Registered in Indonesia Stock Exchange.

Kartini, E. (2023). Financial Performance and the Effect on Sustainability Reports Disclosure, Company Size, and Solvency. KINERJA: Jurnal Manajemen Organisasi dan Industri. 2(1), 21–30.

Kurniawati. O et al. (2021). Kasmir (Vol. 18, Issue 1).

Levina S et al. (2019). Hery. 1(2).

Mahulae D. (2018). Munawir.

Malini, H. (2021a). Behaviour of Stock Returns During COVID-19 Pandemic: Evidence from Six Selected Stock Market in the World. Jurnal Ekonomi Indonesia •, 9, 2020.

Malini, H. (2021b). Profitability Condition with Stylized Fact of Banking Industries in Indonesia, Malaysia and Thailand.

Nurain Al Fatin, I. (2020). Pengaruh Debt To Equity Ratio, Return On Equity, Return On Assets Dan Ukuran Perusahaan Terhadap Nilai Perusahaan Pada Perusahaan Farmasi. http://jurnal.abulyatama.ac.id/humaniora

Pratama et al. (2021). FAKTOR FAKTOR RASIO FUNDAMENTAL PERUSAHAAN DALAM MEMENGARUHI HARGA SAHAM (Studi pada Perusahaan Multisektor yang Terdaftar Pada Indeks IDX-30 Tahun 2016-2020). http://ejournal-s1.undip.ac.id/index.php/accounting

Putri et al. (2021). Keywords Abstract. 2(2), 259–277. https://current.ejournal.unri.ac.id

Rachmat Sofian, D., Manajemen, P., Tinggi Ilmu Ekonomi Bima, S., & Tenggara Barat, N. (2020). Analisis Pengaruh Debt to Equity Ratio (DER) Terhadap Return on Asset (ROA) pada PT Semen Indonesia Tbk. Journal of Business and Economics Research (JBE), 1(3), 220–225.

Ratnasari P et al. (2019). PENGARUH PROFITABILITAS, LIKUIDITAS, TINGKAT PERTUMBUHAN PERUSAHAAN DAN LEVERAGE TERHADAP KEBIJAKAN DIVIDEN. E-Jurnal Manajemen Universitas Udayana, 8(10), 6179. https://doi.org/10.24843/ejmunud.2019.v08.i10.p16

Rusdiyanto et al. (2020). THE EFFECT OF EARNING PER SHARE, DEBT TO EQUITY RATIO AND RETURN ON ASSETS ON STOCK PRICES: CASE STUDY INDONESIAN.

Siswanti T. (2023). PENGARUH INVENTORY TURNOVER, DEBT TO EQUITY RATIO DAN TIME INTEREST EARNED RATIO TERHADAP HARGA SAHAM PERUSAHAAN PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI PERIODE 2018-2021.

Utama S.A. (2020). PERKEMBANGAN PERBANKAN SYARIAH DI INDONESIA. Perkembangan Perbankan Syariah Di Indonesia.

Wijaya, R. (2019). Rendi Wijaya Analisis Perkembangan Return On Assets (ROA) dan Return On Equity (ROE) untuk Mengukur Kinerja Keuangan ANALISIS PERKEMBANGAN RETURN ON ASSETS (ROA) DAN RETURN ON EQUITY (ROE) UNTUK MENGUKUR KINERJA KEUANGAN JURNAL ILMU MANAJEMEN. https://doi.org/10.32502/jimn.vXiX.XXXX

Yunita et al. (2019). Yunita - Reference.

Downloads

Published

2023-12-30

How to Cite

Utama, S. ., Purmono, B. B., Malini, H. ., Mustarudin, M., & Wendy, W. (2023). The influence of debt equity ratio and times interest earned ratio through return on assets on banking companies’ share price. International Journal of Applied Finance and Business Studies, 11(3), 418–429. https://doi.org/10.35335/ijafibs.v11i3.177

Most read articles by the same author(s)