Published date: Jul 18 2023

Journal Title: KnE Social Sciences

Issue title: Transdisciplinary Symposium on Business, Economics, and Communication (TSBEC 2022)

Pages: 734–742

DOI: 10.18502/kss.v8i12.13721

Fathihani .fathihani@undira.ac.idManagement Program, Dian Nusantara University, Jakarta, Indonesia

Vely RandyantiniManagement Program, Dian Nusantara University, Jakarta, Indonesia

Ika Puji SaputriManagement Program, Dian Nusantara University, Jakarta, Indonesia

Didin Hikmah PerkasaManagement Program, Dian Nusantara University, Jakarta, Indonesia

Muhamad Al Faruq AbdullahManagement Program, Dian Nusantara University, Jakarta, Indonesia

Setiyo PurwantoManagement Program, Dian Nusantara University, Jakarta, Indonesia

Manufacturing companies in Indonesia support the government’s role in the development of the economic growth in the country. However, the Covid-19 pandemic has caused problems in making a profit. Therefore, the main problem of this study is to find out and analyze how net profit margin and earning per share affect stock return. Second, knowing and analyzing capital structure as an intervening variable that relates the effect of net profit margin and earning per share to stock return. This study explores the theoretical model and empirical results of how net profit margin and earning per share affects stock return through capital structure. The sampling method was carried out using the purposive sampling method, a data source collection technique that determines the sample with certain considerations. There were 25 companies that were sampled in this study. The data processing was done by multiple linear regression analysis. From various empirical results, there is still little research on the ability of capital structure as a intervening variable to analyze manufacturing companies listed on the Indonesia Stock Exchange. This research is expected to contribute to further research and facilitate the government to approach the development of manufacturing companies to encourage the economy. Meanwhile, investors can be informed about the company’s stock return. The importance of this research can be useful for companies in providing solutions on how to increase net profit margin and earning per share by increasing stock return through capital structure factors.

Keywords: net profit margin, earning per share, capital structure, stock return

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