The Impact of Price-earning Ratio (PER) and Dividend on Sharia Stock Prices

Abstract

Aims: This research aims to determine the effect of price earning ratio and dividends on sharia stock prices. Investors will expect a return on their investment and have the right to own the company. Conversely, the company will seek alternative sources of revenue without having to wait for the availability of operational income. Investors can look at the financial aspects of the company to determine its best performance. There are several financial ratios that investors can use to evaluate a company's stock price, including the independent variables in this study, which are the price-earnings ratio and dividends. whether the variable has an effect or not. Study Design: Descriptive, Corellation, and Regression analysis on time series data. Place and Duration of Study: Sample: the samples obtained in this study were 7 companies listed on the Indonesian stock exchange (BEI) with the Jakarta Islamic Index (JII) sharia index for 2019-2023. Methodology: The data analysis technique used is Multiple Linear Regression with SPSS26. This analysis uses financial statements from 2019 to 2023 taken from the official website of the Indonesia Stock Exchange. Stock price data is obtained from the Yahoo Finance website and the investment platform Stockbit. Results: The results of this study indicate that the significance value of PER is 0.611 > 0.05, so there is no significant effect of PER on sharia stock prices. Meanwhile, for the Dividend variable, the significance value is 0.001 < 0.05, indicating a significant effect of dividends on sharia stock prices. Conclusion: The Price Earnings Ratio (PER) variable does not have a significant effect on stock prices. The Dividend variable has a significant effect on stock prices. At the same time, changes in PER and Dividend have a significant impact on stock prices, or simultaneously affect them.