Muhammad Ishlah Idrus

Growth in food and beverage industry that have an impact on increasing the value of shares in the Indonesia Stock Exchange (IDX) is because the sector foods and beverages resulted in a product that is a primary need and have stocks that are most resistant to the economic crisis compared to other sectors because in a crisis situation or not, the majority of food and beverage products still needed by the community. Thus attracting a number of investors which in turn have an impact on the value of its shares on IDX. This study aims to determine the effect of profitability the improvement Price Earnings Ratio (PER) in the food and beverage industry companies listed in Indonesia Stock Exchange (IDX). The type of data in this study using secondary data obtained from the Indonesia Stock Exchange (IDX), the Financial Services Authority (FSA) or other sources. The method used in this research is the method of multivariate analysis of SEM (Structural Equation Modeling). The results of the study explained that if the profitability of the total increase will significantly influence the rising price earnings ratio (PER) in the food and beverage industry companies listed in Indonesia Stock Exchange (IDX). It is clear that the greater the value, the more efficient the profitability of the costs incurred and means greater profits.

Keywords: profitability effect, price earnings ratio, food industry and beverage

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