Analysis of Profitability, Capital Structure and Dividend Policy towards Share Prices

Abstract

Investment is one of the right alternatives to do, namely by investing in stock capital, but there are so many risks and challenges and unpredictable changes. This study aims to see how much influence return on equity, debt to equity and earnings per share have on firm value and the impact on stock prices. The sample selection method was purposive sampling. The data analysis used is panel data regression using path analysis and sobel test. The results showed that the variables ROE, EPS and firm value have an effect on stock prices, DER has no effect on stock prices. DER has no indirect effect, while ROE and EPS There is an indirect effect on stock prices through firm value. The DER ratio has no effect on stock prices because most investors probably do not really take into account or pay attention to the amount of debt but rather look at the company's ability to finance with debt.