FACTORS THAT INFLUENCE THE PRICE EARNING RATIO (PER) ON COMPANIES LISTED ON LQ45 INDEX INTHE YEAR 2010-2013

Abstract

One of the fundamental analyses that is often used  by investors and securities  analysts in assessing the stock price is the price  earning ratio (PER). The price  earning ratio shows how much investors are willing to pay for each of the company"™s  profit. This study aimed to examine the influence of debttoequity ratio (DER), price  to book value (PBV), return on assets (ROA), and return on equity (ROE) on the  price earning ratio (PER). The samples of the research were 23 companies listed on  LQ45 index. The data used was secondary data from each company listed on LQ45  index for the period of 4 years i.e. 2010, 2011, 2012 and 2013. The samples  werechosenthrough purposive sampling. The data analysis usedthe multiple  regression test preceded by the classic assumption  test consisting of normality test,  multicollinearity test, autocorrelation and heteroscedasticity test. The hypothesis  testing was conducted by using the f-test and t-test.  The results of the research showed that the variable of the debt equity ratio  (DER) and the return on equity (ROE) had a negativeinfluence on the price earning  ratio (PER);the price to book value (PBV) had a positive influence on the price  earning ratio (PER), while the return on assets (ROA) had no influence on the price  earning ratio (PER) of shareson LQ45 index.  Keywords: Debt Equity Ratio (DER), Price Book Value (PBV), Return on Assets  (ROA), Return on Equity (ROE), Price Earning Ratio (PER).