Mediating Role of Company Size on Earnings Per Share and Price to Book Value

DOI

10.2991/aisr.k.220201.023How to use a DOI?

Keywords

earning per share; signaling theory; price to book value

Abstract

Earnings Per Share (EPS) is calculated by dividing net income by the number of outstanding shares (Shares outstanding). When evaluating a company’s success, investors must consider how changes in income affect their investment. This study will examine the impact of the revenue per offer and profit strategy on firm value. This study focused on LQ45 companies listed on the IDX from 2012 to 2019. Using the purposive inspecting strategy with information accessibility measures, 300 organizations were found. This study uses SEM-PLS with WarpPLS 7.0. The study’s findings show that while profits per share and dividend policy have no direct impact on the price to book value, they have a considerable impact when mediated by size as an intervening variable. This shows that if expanding company value is based on increasing profits, then the signal theory can explain if growing corporate assets enhance company worth. to recruit investors to the firm.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

Download article (PDF)

TY  - CONF
AU  - Julia Safitri
AU  - Muhamad Arief Affandi
PY  - 2022
DA  - 2022/02/02
TI  - Mediating Role of Company Size on Earnings Per Share and Price to Book Value
BT  - Proceedings of the 2nd International Conference on Industry 4.0 and Artificial Intelligence (ICIAI 2021)
PB  - Atlantis Press
SP  - 127
EP  - 131
SN  - 1951-6851
UR  - https://doi.org/10.2991/aisr.k.220201.023
DO  - 10.2991/aisr.k.220201.023
ID  - Safitri2022
ER  -