THE IMPACT OF LEVERAGE AND LIQUIDITY TO EARNINGS PER SHARE OF TELECOMMUNICATION FIRMS IN INDONESIA DURING 2010-2015

Abstract

This research aimed to empirically prove the significant influences partially and simultaneously of Degree of Operating Leverage, Degree of Financing Leverage, Degree of Combined Leverage, Current Ratio to Earnings per Share. This research chose the population in telecommunication industry during the period of 2010- 2015. Through purposive sampling and panel data which was obtained from official websites of each firm and Indonesia Stock Exchange, this research had 30 observations from five firms in six consecutive years which fulfilled the criteria. This research adopted quantitative research with fixed effect model, which used some analysis methods of descriptive analysis, classical assumption, multiple regression analysis and hypotheses testing. Based on the result, it was concluded that degree of combined leverage and current ratio had partial significant influences towards earnings per share in telecommunication industry. Simultaneously, those four independent variables provided 80.863% influences towards earnings per share while the rest 19.137% was influenced by other factors.