Abstract :
The purpose of this study is to investigate and test how much influence each independent variable consisting of financial ratios and inflation on the dependent variable that changes in earnings. This research is using secondary data in the form of financial statements of companies manufacturing in the food and beverage sector, which has been published annually listed in the Indonesian Stock Exchange in the period 2008-2011. Sources of data used in this study are the company's financial ratios in food and beverage sectors listed on the Indonesia Stock Exchange that the method of analysis used descriptive analysis and hypothesis testing using the model outer and inner test models. The results showed that the financial ratios and indicator variables measuring liquidity ratios and activity ratios significant effect on earnings changes, while the indicator variables measuring IHK inflation with no significant effect on earnings changes.
Keywords: Financial Ratios, Inflansi and Earnings Changes