Construction companies' profits soar as return on equity boosts earnings per share.
The research analyzed how return on assets and return on equity affect earnings per share and price book value in construction companies listed on the Indonesia Stock Exchange from 2015 to 2018. They found that return on assets negatively impacts earnings per share, while return on equity positively affects it. Additionally, return on equity positively influences price book value, but earnings per share has a negative impact on it. Interestingly, return on assets does not significantly affect price book value.