Mediating Role of Company Size on Earnings Per Share and Price to Book Value

Abstract

Earnings Per Share (EPS) is calculated by dividing net income by the number of outstanding shares (Shares outstanding). When evaluating a company's success, investors must consider how changes in income affect their investment. This study will examine the impact of the revenue per offer and profit strategy on firm value. This study focused on LQ45 companies listed on the IDX from 2012 to 2019. Using the purposive inspecting strategy with information accessibility measures, 300 organizations were found. This study uses SEM-PLS with WarpPLS 7.0. The study's findings show that while profits per share and dividend policy have no direct impact on the price to book value, they have a considerable impact when mediated by size as an intervening variable. This shows that if expanding company value is based on increasing profits, then the signal theory can explain if growing corporate assets enhance company worth. to recruit investors to the firm.