THE EFFECT OF EARNING PER SHARE (EPS) AND PRICE EARNING RATIO (PER) ON STOCK PRICES IN LQ45 COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX)

Companies that have a fairly good performance will be more attractive to investors. Increased company performance will affect the increase in stock prices. Especially the LQ45 companies listed on the IDX which are the most sought after by investors. This study aims to determine and analyze the effect of earnings per share (EPS) and price-earnings ratio (PER) on stock prices. The method used in this study is a quantitative method with secondary data and the type of associative problem formulation that has a causal relationship. The population in this study are LQ45 companies listed on the Indonesia Stock Exchange in 2018-2020. Based on the existing criteria, the sample was taken using the purposive sampling technique, the sample obtained was 12 companies with a total sample of 36 data. Hypothesis testing in this study used data normality test, heteroscedasticity test, multicollinearity test, Chow test, Hausman test, Lagrange multiplier test, coefficient of determination analysis, F-test, and t-test using the Eviews 9 application. The results showed that partially earnings per share (EPS) and price-earnings ratio (PER) had a significant positive effect on stock prices.