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The Analysis of Factors Affecting Price Earnings Ratio on the Company Shares Registered in Jakarta Islamic Index

Author

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  • Muslich Lutfi
  • Jessi Arsitha

Abstract

The purpose of this research is to find out and analyze the effect of factors affecting price earning ratio on the shares registered in Jakarta Islamic Index. It is a causal research, a causality research which is based on the observation on the effects and the causing factors through some particular data. The data used were secondary data. This research used 48 observations as the research samples obtained based on certain criteria. The hypothesis was tested by using F-Test (Simultaneous Test), T-Test (Partial Test). The results showed that, partially, the Total Assets and Debt to Equity have significant effects to the Price Earning Ratio on the shares registered in Jakarta Islamic Index. Meanwhile, the Dividend Payout Ratio has no effect to Price Earning Ratio on the shares registered in Jakarta Islamic Index.

Suggested Citation

  • Muslich Lutfi & Jessi Arsitha, 2016. "The Analysis of Factors Affecting Price Earnings Ratio on the Company Shares Registered in Jakarta Islamic Index," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(3), pages 55-63, September.
  • Handle: RePEc:khe:scajes:v:2:y:2016:i:3:p:55-63
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    Citations

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    Cited by:

    1. Ekrem Meric & Melik Kamisli & Fatih Temizel, 2017. "Interactions among Stock Price and Financial Ratios: The Case of Turkish Banking Sector," Applied Economics and Finance, Redfame publishing, vol. 4(6), pages 107-115, November.

    More about this item

    Keywords

    Total assets; debt to equity; dividend payout ratio; price earning ratio; Jakarta Islamic Index;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets

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