Financial Ratio and Price Earnings Ratio: Analysis of Technology Companies Listed on the IDX

Widya Nur Rochmah, Fadia Zen (), Lulu Nurul Istanti and Yuli Agustina
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Widya Nur Rochmah: Universitas Negeri Malang
Fadia Zen: Universitas Negeri Malang
Lulu Nurul Istanti: Universitas Negeri Malang
Yuli Agustina: Universitas Negeri Malang

A chapter in Proceedings of the 4th Business Innovation Sustainability and Technology International Conference (BISTIC 2024), 2024, pp 230-241 from Springer

Abstract: Abstract This study is a quantitative causality study which aims to investigate the relationship between Return on Equity Ratio, Current Ratio, and Debt to Equity Ratio with Price Earnings Ratio, with a focus on technology sector companies listed on the IDX from 2020 to 2023. Using SPSS 27, the study employs Multiple Linear Regression Analysis and Moderated Regression Analysis (MRA) as data analysis methods. The findings indicate that the Signaling Theory does not apply to technology companies during the COVID-19 pandemic. The Current Ratio significantly impacts the Price Earnings Ratio, while the Return on Equity Ratio and the Debt-to-Equity Ratio are not given much consideration by investors when assessing the Price Earnings Ratio. Additionally, the company size does not moderate the relationship between Return on Equity, Current Ratio, or Debt to Equity Ratio and Price Earnings Ratio.

Keywords: Return on Equity; Current Ratio; Debt to Equity Ratio; Firm Size; Price Earnings Ratio (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-576-8_20

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DOI: 10.2991/978-94-6463-576-8_20

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