The Role of PER as an Intervening Variable in the Relationship between Assets, Debt to Equity Ratio, and Stock Prices in Main Board Basic Material Companies on the IDX (2021–2024)
DOI:
https://doi.org/10.55927/ijsmr.v4i3.9Keywords:
Assets, DER, PER, Stock PriceAbstract
This study aims to evaluate the intermediary function of P/E Ratio (Price to Earnings Ratio) in the relationship between D/E Ratio (Debt to Equity Ratio), Assets , and stock value. This study adopts a quantitative explanatory approach using all companies listed in the basic materials sector on the Main Board of the Indonesia Stock Exchange during the 2021–2024 period. The analysis technique used is Smart PLS 4.0. The results of the statistical analysis show that the Assets and D/E Ratio variables have a significant positive effect. on the P/E Ratio , and the P/E Ratio has no significant effect on Price and the indirect path influence of both Assets and D/E Ratio on Stock Price mediated by P/E Ratio did not reach significance. Study provides an important contribution to the financial literature by revealing the transmission mechanism of the influence of assets and DER through PER to stock prices, which provides strategic insights for corporate management, investors, and regulators regarding how financial and operational decisions can be utilized to increase market valuation.
References
Adria, LSC (2020). THE EFFECT OF LEVERAGE, LIQUIDITY, COMPANY SIZE, AND TOTAL ASSET TURNOVER ON PROFITABILITY. Journal of Accounting Paradigms , 2 (1), 393. https://doi.org/10.24912/jpa.v2i1.7168
Al Jupri, MF, & Sisdianto, E. (2024). ANALYSIS OF FINANCIAL REPORTS AND ITS RELATIONSHIP WITH COMPANY FINANCIAL STABILITY IN THE DIGITAL ERA .
Amanta, HP, Wahyuni, RN, & Firmansyah, A. (2022). The Role of Debt Policy in Investor Response to Mining Assets, Fixed Assets, and Company Size. Journal of Taxation and State Finance (PKN) , 4 (1), 112. https://doi.org/10.31092/jpkn.v4i1.1659
Andriani, SD, Kusumastuti, RD, & Hernando, R. (2022). The Effect of Return on Equity (ROE), Earnings Per Share (EPS), and Debt to Equity Ratio (DER) on Stock Prices (An Empirical Study of Processed Food Industry Companies Listed on the Indonesia Stock Exchange in 2018–2020). Owner , 7 (1), 333. https://doi.org/10.33395/owner.v7i1.1268
Anjayagni, P., & Purbawati, D. (2020). The Effect of CR (Current Ratio), DER (Debt to Equity Ratio) and TATO (Total Assets Turn Over) on Stock Prices (A Study of Pharmaceutical Sub-Sector Companies on the Indonesia Stock Exchange for the 2015-2018 Period). Journal of Business Administration , 9 (3), 224. https://doi.org/10.14710/jiab.2020.28033
Audi, NPRA, & Wahidahwati, W. (2021). Determinants of Firm Value with Capital Structure as an Intervening Variable. Monex Journal Research Accounting Politeknik Tegal , 10 (1), 94. https://doi.org/10.30591/monex.v10i1.2293
Benu, YR (2020). The Influence of Ownership Structure and Financial Factors on Dividend Policy. E-Journal of Accounting , 30 (10), 2641. https://doi.org/10.24843/eja.2020.v30.i10.p16 Dewi, AP, & Suryani, AW (2020). DEBT POLICY: ASSET STRUCTURE, PROFITABILITY AND GROWTH OPPORTUNITIES. Journal of Business and Accounting , 211. https://doi.org/10.34208/jba.v22i2.739
Dewi, AP, & Suryani, AW (2020). DEBT POLICY: ASSET STRUCTURE, PROFITABILITY, AND GROWTH OPPORTUNITIES. Journal of Business and Accounting , 211. https://doi.org/10.34208/jba.v22i2.739
Digdowiseiso, K., Subiyanto, B., & Fahlevi Lubis, R. (2022). ANALYSIS OF THE DETERMINANTS OF FINANCIAL REPORTING QUALITY OF NON-FINANCIAL SERVICES COMPANIES ON THE INDONESIA STOCK EXCHANGE .
Erick, C. (2021). The Effect of Return on Assets (ROA), Debt to Equity Ratio (DER), and Earnings per Share (EPS) on Stock Prices of Mining Companies (Coal Industry Sector) Listed on the Indonesia Stock Exchange (IDX) in 2016-2018. Journal of Business Management and Entrepreneurship , 5 (1), 94. https://doi.org/10.24912/jmbk.v5i1.10836
Fitriyani, E. (2024). The Influence of Islamic Social Reporting, Managerial Ownership and Capital Structure on Firm Value. Islamic Accounting Journal , 3 (2), 34. https://doi.org/10.18326/iaj.v3i2.34-43
Fiorensia, F., Siregar, L., Nainggolan, CD, & Silitonga, HP (2019). THE IMPACT OF QUICK RATIO AND DEBT TO EQUITY RATIO ON PRICE EARNING RATIO AT PT MERCK, TBK. FINANCIAL ACCOUNTING JOURNAL , 5 (2), 91. https://doi.org/10.37403/financial.v5i2.114
Handayani, R., Suhendro, S., & W, EM (2022). The effect of profitability, debt to equity ratio, price to earnings ratio, and market capitalization on stock returns. INNOVATION , 18 (1), 127. https://doi.org/10.30872/jinv.v18i1.10397
Hidayati, L., & Suwaidi, RA (2022). Earnings per share as an intervening variable between financial ratios and stock prices in property and real estate companies. Fair Value Journal of Accounting and Finance , 5 (1), 74. https://doi.org/10.32670/fairvalue.v5i1.1914
International Journal of Evaluation and Research in Education (IJERE). (2025). International Journal of Evaluation and Research in Education (IJERE) . https://doi.org/10.11591/ijere
Jane, J., & Widjaja, I. (2025). The mediating effect of profitability in relation to the influence of asset utilization efficiency and financial solvency on stock prices (A study of mining companies in Indonesia). Journal of Business Management and Entrepreneurship , 9 (1), 155. https://doi.org/10.24912/jmbk.v9i1.33844
Kalbuana, N., Kusiyah, K., Supriatiningsih, S., Budiharjo, R., Budyastuti, T., & Rusdiyanto, R. (2022). Effect of profitability, audit committee, company size, activity, and board of directors on sustainability. Cogent Business & Management , 9 (1). https://doi.org/10.1080/23311975.2022.2129354
Khan, AQ, Rahayu, CWE, & Rahmawati, CHT (2024). The Effect of Financial Ratios on Stock Returns: By Mediation of Price Earning Ratio. PERFORMANCE , 28 (1), 23. https://doi.org/10.24002/kinerja.v28i1.7826
Lestari, E. (2023). Debt to Equity Ratio (DER) and Firm Size Toward Firm Value: The Mediating Role of Return on Assets. Return Study of Management Economics and Business , 2 (11), 1095. https://doi.org/10.57096/return.v2i11.172
Lestari, IP, & Amaniyah, E. (2022). The Effect of Return on Equity, Debt to Asset Ratio, Earnings Per Share, Total Asset Turnover, and Firm Size on Stock Prices in Pharmaceutical Manufacturing Companies Listed on the Indonesia Stock Exchange for the 2015-2019 Period. Journal of Management Science Studies (JKIM) , 1 (4). https://doi.org/10.21107/jkim.v1i4.13499
Lestari, I., Anggraeni, Y., & Octavia, AN (2023). THE EFFECT OF RETURN ON ASSETS, RETURN ON EQUITY, AND COMPANY SIZE ON COMPANY VALUE. Solusi , 21 (2), 153. https://doi.org/10.26623/slsi.v21i2.6355
Liana, N., & Febriyanti, D. (2024). The Effect of Return on Assets, Current Ratio, and Debt to Equity Ratio on Stock Prices with Firm Size as a Moderating Variable (On Mining Companies in the Oil and Gas Subsector Listed on the Indonesia Stock Exchange in 2016-2023). INNOVATIVE Journal of Social Science Research , 4 (3), 11270. https://doi.org/10.31004/innovative.v4i3.11438
Lorenza, D., Kadir, Muh. A., & Sjahruddin, H. (2020). THE EFFECT OF CAPITAL STRUCTURE AND COMPANY SIZE ON PROFITABILITY IN AUTOMOTIVE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE. Journal of Management Economics , 6 (1), 13. https://doi.org/10.37058/jem.v6i1.1544
Mahanani, HT, & Kartika, A. (2022). The effect of capital structure, liquidity, firm size, and profitability on firm value. Fair Value Scientific Journal of Accounting and Finance , 5 (1), 360. https://doi.org/10.32670/fairvalue.v5i1.2280
Marinda, ED, & Dura, J. (2024). Analysis of Earnings Per Share and Debt to Equity Ratio in Designing Dividend Policy on HIDIV20 Company Shares. Monex Journal Research Accounting Politeknik Tegal , 13 (1), 72. https://doi.org/10.30591/monex.v13i01.5997
Maulani, D., & Riani, D. (2021). The Effect of Inflation, Interest Rates, and Financial Ratios on Stock Prices. Oikonomia Journal of Management , 17 (2), 84. https://doi.org/10.47313/oikonomia.v17i2.1244
Maychael, M., & Pangestuti, DC (2022). The Role of Risk Management in Moderating Financial Ratios to Firm Value. Owner , 6 (4), 3398. https://doi.org/10.33395/owner.v6i4.1137
Mohammadian, Z., Fathi, S., & Azarbayejani, K. (2021). Analyzing the Corporate Financial Signaling Theory in Order to Manage Information Asymmetry. Chashm/Andāz-i Mudīriyyat-i Mālī , 11 (36), 145. https://doi.org/10.52547/jfmp.11.36.145
Monalisa, M. (2021). The Influence of Fundamental and Technical Factors on Stock Prices of Hotel Industry Companies Listed on the Indonesia Stock Exchange. Movere Journal , 3 (2), 54. https://doi.org/10.53654/mv.v3i2.187
Nasution, SA, Pasaribu, AB, Nainggolan, R., Karo, ESB, & Buulolo, A. (2022). The Effect of Debt to Equity Ratio, Return on Equity, Net Profit Margin, and Earnings Per Share on Stock Prices in Building Construction Subsector Companies Listed on the Indonesia Stock Exchange for the 2016-2020 Period. EKONOMIS Journal of Economics and Business , 6 (1), 282. https://doi.org/10.33087/ekonomis.v6i1.494
Ngadiman, SS, & Widjaja, I. (2023). The effect of return on assets (ROA), return on equity (ROE), debt to equity ratio (DER), and price earning ratio (PER) on stock returns in food and beverage companies listed on the Indonesia Stock Exchange in 2017-2020. Journal of Business Management and Entrepreneurship , 7 (5), 981. https://doi.org/10.24912/jmbk.v7i5.26500
Noviyanti, D., & Ruslim, H. (2021). The Effect of Capital Structure, Profitability, and Activity Ratio on Firm Value. Journal of Managerial and Entrepreneurship , 3 (1), 34. https://doi.org/10.24912/jmk.v3i1.11285
Nurdiana. (2023). Millennial Generation Perceptions of Product Quality, Prices, and Promotions During Online Shopping on the Shopee Marketplace Site .
Nurliandini, N., Juniwati, EH, & Setiawan, S. (2021). Analysis of the Influence of Fundamental, Technical, and Macroeconomic Factors on Stock Prices of Chemical Subsector Companies Listed on the Sharia Stock Index. Journal of Applied Islamic Economics and Finance , 2 (1), 35. https://doi.org/10.35313/jaief.v2i1.2907
Pradanimas, A., & Sucipto, A. (2022). The Effect of Company Size, Profitability, and Leverage on Stock Prices with Company Value as an Intervening Variable. Briliant Journal of Research and Conceptual Studies , 7 (1), 93. https://doi.org/10.28926/briliant.v7i1.788
Putri, EGD, Lakoni, I., & Safrianti, S. (2023). THE INFLUENCE OF PROFITABILITY (ROE) AND SOLVENCY (DER) ON STOCK PRICES WITH COMPANY VALUE AS A MEDIATION VARIABLE. Dynamic Management Journal , 7 (3), 281. https://doi.org/10.31000/dmj.v7i3.8566
Rahmiyati, N., Sandari, TE, & Hariyani, DS (2022). The Effect of Liquidity, Leverage, and Asset Turnover on Stock Prices Using Profitability as an Intervening Variable. Malahayati Journal of Accounting and Management Research (JRAMM) , 11 (2), 22. https://doi.org/10.33024/jrm.v11i2.6277
Ratnaningtyas, H. (2021). THE EFFECT OF RETURN ON EQUITY, CURRENT RATIO, AND DEBT TO EQUITY RATIO ON STOCK PRICES. Proaksi Journal , 8 (1), 91. https://doi.org/10.32534/jpk.v8i1.1660
Richard, C., & Setyawan, IR (2022). Analysis of the Determinants of Price Earning Ratio in Companies Listed on the LQ45 Index in 2015-2019. Journal of Business Management and Entrepreneurship , 6 (6), 627. https://doi.org/10.24912/jmbk.v6i6.20689
Rizal, I. (2022). The Effect of Debt to Equity Ratio, Return on Equity, and Earnings Per Share on Stock Prices in the Jakarta Islamic Index. Journal of Applied Management Research , 2 (1), 66. https://doi.org/10.36441/jamr.v2i1.455
Rushadiyati, R. (2021). FINANCIAL RATIO ANALYSIS OF STOCK PRICES IN COMPANIES LISTED ON THE JAKARTA ISLAMIC INDEX (JII) FOR THE PERIOD 2015 - 2019. Solusi , 19 (1), 83. https://doi.org/10.26623/slsi.v19i1.3002
Rohmah, IN, & Nasir, M. (2023). Analysis of the influence of bank health level on profitability using the RGEC method on state-owned and private banks listed on the Indonesian Stock Exchange (IDX) in the 2017-2021 period. Innovative: Journal of Social Science Research , 3 , 5238.
Rumiatiningsih, R., Kusno, HS, & Ghozi, S. (2021). The Effect of Profitability Ratios and Valuation on Stock Prices (A Case Study of Banks Listed on the Indonesia Stock Exchange for the 2016-2020 Period). Journal of Business and Entrepreneurship , 17 (3), 291. https://doi.org/10.31940/jbk.v17i3.291-302
Sari, RP, Hermuningsih, S., & Cahya, AD (2021). THE EFFECT OF CURRENT RATIO, DEBT EQUITY RATIO, TOTAL ASSET TURNOVER ON PRICE EARNING RATIO. Proaksi Journal , 8 (1), 156. https://doi.org/10.32534/jpk.v8i1.1706
Satrida, G., & Lutfi, L. (2024). The Influence of Financial Experience, Emotion, and Monetary Values on Debt Tendency with Materialism as the Mediator. EKOMBIS SAINS Journal of Economics, Finance, and Business , 9 (1), 1. https://doi.org/10.24967/ekombis.v9i1.2737
Shinta, D., Ratnasari, SL, Susanto, A., & Hakim, L. (2025). THE EFFECT OF ORGANIZATIONAL CITIZENSHIP BEHAVIOR (OCB) AND DIGITAL CAPABILITY ON EMPLOYEE PERFORMANCE OF BANK INDONESIA, WEST SUMATRA PROVINCE THROUGH JOB SATISFACTION .
Suharti, S., & Tannia, Y. (2020). Analysis of the Effect of Debt to Equity Ratio, Debt to Asset Ratio, Price Earning Ratio, and Price to Book Value on Stock Prices in Agricultural Sector Companies. INVEST Journal of Business and Accounting Innovation , 1 (1), 13. https://doi.org/10.55583/invest.v1i1.19
Tania, G., Yantiana, N., & Noviarty, H. (2024). Determinants of Current Ratio, Debt to Equity, and Price to Book Value on Stock Prices. Scientific Journal of Economic Management & Accounting (MEA) , 8 (3), 1214. https://doi.org/10.31955/mea.v8i3.4578
Wiratno, DH, & Yustrianthe, RH (2022). Price-earnings ratio, size, and firm value in manufacturing companies in Indonesia. Fair Value Journal of Accounting and Finance , 4 (12), 5587. https://doi.org/10.32670/fairvalue.v4i12.2097
Yana, D., & Agustiningsih, W. (2022). THE EFFECT OF RETURN ON EQUITY (ROE), DEBT TO EQUITY RATIO (DER), AND PRICE EARNINGS RATIO (PER) ON STOCK PRICES. ACCELERATION National Scientific Journal , 4 (2), 67. https://doi.org/10.54783/jin.v4i2.566
Zakariya, NA (2025). MODERATION OF ORGANIZATIONAL COMMITMENT ON THE DETERMINANTS OF HUMAN RESOURCE COMPETENCY, INFORMATION TECHNOLOGY USE, INTERNAL CONTROL SYSTEM, AND GOOD CORPORATE GOVERNANCE ON THE QUALITY OF BAZNAS FINANCIAL REPORTS FROM A SHARIAH ENTERPRISE THEORY PERSPECTIVE .
