Analysis of the Effect of Financial Performance, Company Size on Stock Prices with Dividend Policy as Moderating Variable in Pharmaceutical Companies Listed on the Indonesia Stock Exchange 2013-2019

Abstract

Financial instrument shares as part-ownership rights of a company which is evidence of or participation in a company. This study analyzes the effect of profitability, solvency, activity liquidity, and company size on pharmaceutical companies listed on the Indonesian stock exchange for 2013 – 2019. This study will also examine the dividend policy variable used as the moderating variable in the research model. The population is pharmaceutical companies listed on the Indonesia Stock Exchange for the period 2013 – 2019. All populations in this study were used as research samples of as many as nine companies. Moreover, the number of observations used was 63 observations. The type of data used is secondary data and the data analysis technique used in Panel Data Regression Analysis and Interaction Moderating Test with the help of EViews10 software. This study indicates that at alpha five percent, profitability and firm size have a significant positive effect on stock prices. In contrast, solvency, liquidity, and activity ratios have no significant effect on stock prices. This study also shows that dividend policy can strengthen the influence of solvency and liquidity on stock prices. However, dividend policy cannot moderate profitability, activity, firm size on stock prices. Keywords: Profitability, solvency, liquidity, activity, company size, dividend policy, stock price.

The Effect Of Company Financial Performance On Stock Prices With Dividend Payout Ratio As Intervening Variables In Food And Beverage Sector Companies

“…In other words, this ratio helps cover the entire rupiah of equity used as collateral for debt. A high DER will reduce stock returns, because it will affect stock returns.This is supported by research (Megamawarni & Pratiwi, 2021), (Hung et al, 2018), (Deitiana et al, 2015), (Sururi et al, 2021)which reveals that the Debt to equity ratio has an effect on stock prices Effect of liquidity on stock prices Liquidity is a company's ability to meet its short-term financial obligations in a timely manner or to provide cash or cash equivalents, which is indicated by the size of its current assets. If the current ratio of assets that can be easily converted into cash, such as cash, stock, accounts receivable, and inventory is low, the market price of the company's stock will fall, but if the current ratio is too high, it is not always good.…”

“…The company's decision to distribute dividends has a strong reputation and can therefore be added to the company's stock price.Peprevious research by (Megamawarni & Pratiwi, 2021), (Bulutoding et al, 2018), (Deitiana et al, 2015)found that ROA has a significant effect on stock prices through the DPR. These findings indicate that the DPR mediates the effect of ROA on the company's stock price.Peresearch conducted by (Megamawarni & Pratiwi, 2021), (Bulutoding et al, 2018), (Deitiana et al, 2015) (Sururi et al, 2021)states that DER has a significant effect on stock prices through the DPR. These findings indicate that if the DER increases, the DPR will also increase, so that this condition will also have an impact on the increase in the company's stock price.…”

Pengaruh Rasio Profitabilitas dan Solvabilitas terhadap Harga Saham dengan Market Valuation Ratio sebagai Variabel Moderasi

“…Namun, menurut penelitian yang dilakukan oleh Yuantoro et al (2021) menyatakan bahwa kehadiran DPR tidak dapat memoderasi pengaruh ROE terhadap harga saham. Sedangkan dalam penelitian yang dilakukan oleh Satar & Jayanti (2020) dan Sururi et al (2021)…”

Jurnal Varian Full Text

“…One of the financial instruments in the United States capital market that has price stability is the type of stock. In addition, stocks are the most sought-after financial instrument by investors (Sururi et al, 2021). That is most likely why many investors are interested in investing in US stocks.…”