Abstract:
This research examines factor influencing of liquidity, profitability,
activity ratio, earnings per share and firm size toward price earnings ratio
of consumer goods industry sector during period 2010-2017. This research
used quantitative method with purposive sampling and panel data that
obtained from Indonesia Stock Exchange and company official website.
This research has 64 observations from eight companies in eight year
annually. Classical assumption test was conducted to make sure the data
obtained will lead to a valid result. This research is analyzed by using
multiple regression analysis and adopts the fixed effect model. The
empirical evidence of the research is indicates current ratio, inventory
turnover, return on equity, and firm size has partially positive significant
influence toward price earnings ratio, while earnings per share has
negative significant influence towards price earnings ratio.
Simultaneously, those independent variables are influence the price
earnings ratio by 56.5512% and the rest 43.4488% is influenced by other
variables which are not examined by this research.
