THE INFLUENCE OF MARKET VALUE AND LEVERAGE ON IDX MANUFACTURING SHARE PRICES 2019-2023

This study aims to examine the effect of market value and leverage on stock prices
of manufacturing companies listed on the Indonesia Stock Exchange during the
2019–2023 period. Market value is proxied by Earnings Per Share (EPS),
while leverage is measured using the Debt to Equity Ratio (DER). This research
employs a quantitative approach with a causal design and utilizes variance-based
Structural Equation Modeling (SEM) through WarpPLS 7.0. The population
consists of 219 manufacturing companies, with a sample of 74 firms selected using
purposive sampling. The data used are secondary data derived from annual
financial statements and year-end closing stock prices. The results indicate that
market value, as measured by EPS, has a positive and significant effect on stock
prices. This finding suggests that higher profitability per share increases investor
interest, thereby driving stock price growth. In contrast, leverage, as proxied by
DER, shows a positive but statistically insignificant effect on stock prices. This
implies that the level of debt usage is not a primary determinant of stock price
movements in manufacturing firms. This study highlights that investors tend to
prioritize profitability signals over capital structure in making investment
decisions. The findings are expected to provide insights for investors and corporate
management in understanding fundamental factors influencing stock prices.