THE INFLUENCE OF NET PROFIT MARGIN (NPM) AND EARNING PER SHARE (EPS) ON MARKET CAPITALIZATION IN BUMN CONSTRUCTION SECTOR LISTED ON INDONESIA STOCK EXCHANGE PERIOD 2012-2017

1Ferry Mulyawan, Mohd Haizam Mohd Saudi

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Abstract:

This study aims to determine the effect of financial performance of the company's market capitalization. Independent variables was used in this study is financial performance, consists of Net Profit Margin (NPM) and Earning Per Share (EPS), while the dependent variable is the market capitalization. The sample in this study consisted of 4 BUMN field of construction listed in the Indonesia Stock Exchange 2012-2017 were selected based on specific criteria using purposive sampling method. Methods of data analysis used in this study is multiple linear regression. The results of simultaneous showed that the NPM, and EPS are simultaneously effect on market capitalization. and partially showed that only variables NPM was effect on market capitalization, whereas EPS no effect on market capitalization.

Keywords:

financial performance, Net Profit Margin (NPM), and Earning Per Share (EPS), the market capitalization

Paper Details
Month2
Year2020
Volume24
IssueIssue 2
Pages8025-8043

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