Do Earnings per Share and Dividend per Share Affect Stock Prices? Empirical Evidence from the Indonesian Pharmaceutical Sub-Sector (2020–2024)

Abstract

This study aims to examine the effect of Earnings per Share (EPS) and Dividend per Share (DPS) on stock prices of pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. The study applies a panel data regression approach to a sample of six pharmaceutical sub-sector companies selected through purposive sampling. Data analysis was conducted using EViews 13 software. The results indicate that Earnings per Share (EPS) does not have a significant effect on stock prices, with a significance level of 0.1655. Similarly, the test results for Dividend per Share (DPS) show no significant effect, with a significance level of 0.87. However, simultaneously, EPS and DPS have a significant effect on stock prices. These findings suggest that investor orientation in the pharmaceutical sub-sector is not solely based on observable financial performance indicators, as reflected by the insignificant individual effects of EPS and DPS.