THE EFFECT OF EARNING PER SHARE AND DEBT-TO-EQUITY RATIO ON STOCK PRICES MODERATED BY EARNINGS MANAGEMENT ON THE NON-CYCLICAL SECTOR IN MAIN BOARD INDEX

Abstract

This purpose of this study to analyze the effect of Earnings Per Share (EPS) and Debt-to-Equity Ratio (DER) on stock price by earnings management as a moderating variable. A quantitative approach was used by analyzing secondary data from the financial reports of consumer non-cyclical sector companies listed on the Indonesia Stock Exchange (IDX) under the Main Board Index during the 2022–2023 period. The analysis was conducted using panel data regression with the Random Effect Model (REM) and Moderated Regression Analysis (MRA) in EViews 12. The results show that: (1) EPS has a negative and insignificant effect on stock price, (2) DER has a negative and insignificant effect on stock price, (3) earnings management significantly strengthens the relationship between EPS and stock price, and (4) earnings management also significantly strengthens the relationship between DER and stock price. These findings imply that earnings management plays an important role in enhancing the financial signals perceived by investors, particularly in assessing a company's profitability and capital structure.