The Effect of Current Ratio, return on Equity, and Earning Per Share, Toward Price to Book Value on Palm Oil Agriculture Sector Companies Registered in Indonesia Stock Exchange with Debt to Equity Ratio as Moderating Variable for the Period 2016-2020

Abstract

This research was conducted to test whether the independent variable, Current Ratio, Return on Equity, and Earning per Share, have a significant effect towards the dependent variable, Price to Book Value, with Debt to Equity as Moderating Variable on Palm Oil Sector companies listed in Indonesia Stock Exchange for the period 2016-2020. Research samples are determined through purposive sampling method. This research uses palm oil sector companies that have listed on the Indonesia Stock Exchange(IDX) from 2016 to 2020 as research objects. Data for this research are secondary data which are obtained from www.idx.co.id and samples companies official websites. The results of this research indicate that there is no significant effect from Current Ratio towards Price to Book Value, but there is a significant effect from Return on Equity and Earning Per Share towards Price to Book Value. Debt to Equity Ratio is able to moderate the effect of Current Ratio toward Price to Book Value, but unable to moderate the effect of Return on Equity and Earning Per Share toward Price to Book Value. This research is useful as reference for corporate governance and investors in making a decision whether for managing the company or investing in a company about the effect of current ratio, return on equity, earning per share, and debt to equity ratio toward price to book value. This research tests the results of various previous researches by adding debt to equity ratio as moderating variable on a more specific sector.