The Effect of Dividend Policy on Share Price Manufacturing Companies in Indonesia

Usman, Bahtiar; Lestari, Henny Setyo; Sofyan, Syofriza

doi:10.2991/aebmr.k.210311.023

Cited by 8 publications

(7 citation statements)

References 13 publications

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“…The results of this study concluded that there is a significant negative influence between dividend yield on stock returns. The results of this study are in line with research Aryanti, (2021) and Usman et al, (2021) which results in that dividend yield has a significant negative effect on stock returns, but is not in line with research conducted by Ruhani & Mat Junoh, (2022). A decrease in dividend yield can increase stock prices.…”

Section: Individual Test (T-test)supporting

confidence: 51%

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Effect of Financial Market Variables on Stock Return on Index LQ45

Alhafizh

2023

IJSSHR

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The purpose of this study is to look at the factors that affect stock market returns so that they can provide useful profits to maximize profits, because it is very important for investors to maintain confidence and forecast price movements. Return on shares is the goal of investors in investing in the stock market. Stock returns are divided into two forms, namely dividends and price differences. Investors usually do analysis with various financial variables before buying stocks. The independent variables in this study are dividend yield, EPS, PER, market capitalization, and trading volume. While the dependent variable is stock return. This research was conducted by collecting data from 16 companies included in the LQ45 index over a period of 7 years (2015-2021) and using the regression model data panel in this test. Dividend yields have a significant negative effect on stock returns. The price-to-earnings ratio has a positive effect on stock returns. Earnings per share, trading volume and market capitalization do not significantly affect stock returns. The implication of the research that has been conducted is to provide direction for financial managers to be able to formulate policies that can maximize shareholder welfare by considering variables such as dividend yield and PER. For investors, this research is expected to provide information for investors related to the formulation of strategies to minimize their risk in investing in stocks.

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Section: Individual Test (T-test)supporting

confidence: 51%

“…Dividends are more than just a tool for distributing a company's excess revenue. Dividend payments provide information to investors that the company has a strong financial advantage (Usman et al, 2021). Some investors use dividend yield as a measure of risk and as an investment filter, i.e.…”

Section: Introductionmentioning

confidence: 99%

Effect of Financial Market Variables on Stock Return on Index LQ45

Alhafizh

2023

IJSSHR

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“…Companies reduce the distribution of dividend yields to investors and allocate profits for investment, allowing them to earn more profits in the future and to share more profits with investors in the future. Some investors prefer the distribution of profits to investors in the future, resulting in increased demand for company shares and higher share prices in the future (Usman et al, 2020).…”

Section: Dividend Yieldmentioning

confidence: 99%

The Determinants of Share Price on Commercial Bank in Bursa Malaysia

Darami¹,

Shahidan²,

Romli³

2022

IJARBSS

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This study investigates the factors that influence the share price of commercial banks that are publicly traded on the Malaysian stock exchange, the Bursa Malaysia, between 2011 until 2020. Data for this study were gathered from the annual reports of the sample banks and these data were examined with the help of regression modelling. The findings demonstrated that earnings per share, dividend payout ratio, dividend yield, and the size of the banks, all have a statistically significant positive relationship with share price, however the price to earnings ratio has a statistically significant inverse relationship with share price. The key result of the study is that the dividend yield, earnings per share, and price-earnings ratio are the most important elements in determining the share price of commercial banks listed on the Malaysian stock exchange.

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“…The equity market is a seen as crucial as a driver of the economic sustainability of any country, including Indonesia (Bathia et al, 2020;Han & Tang, 2020;Lusiana, 2020a;Usman et al, 2021). Stock prices are a crucial reference before investing in the capital market (Atems & Yimga, 2021;Huang & Liu, 2021;Tao et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Empirical Evidence from the Indonesia Stock Exchange: The Influence of Debt to Equity Ratio (DER) and Return on Equity (ROE) on Sharia Stock Prices

Bulkia

Burhannudin²,

Kurniaty

et al. 2022

ijtc

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This paper aims to obtain empirical evidence about the influence of the Debt to Equity Ratio (DER) and Return on Equity (ROE) on Islamic stock prices, either partially or simultaneously. An exploratory investigation of 26 companies classified as sharia with the criteria of the Jakarta Islamic Index on the Indonesia Stock Exchange. The secondary data analysis used is to collect complete financial data for the 2014-2018 period. The secondary data was successfully examined as many as 130, then processed using SPSS 26, then analyzed using regression. The findings of the investigation provide empirical evidence that the Debt to Equity Ratio (DER) and Return on Equity (ROE) have a positive and significant influence on Islamic stock prices, either partially or simultaneously. This study provides a theoretical contribution to limited research exploring the Debt to Equity Ratio (DER) and Return on Equity (ROE) with Islamic stock prices on the stock exchange in Indonesia. In practice, this research provides significant insights that can be used to measure the company's health and assess the company's ability to generate returns from shareholder investments of companies classified as sharia.

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The Effect of Dividend Policy on Share Price Manufacturing Companies in Indonesia

Cited by 8 publications

References 13 publications

Effect of Financial Market Variables on Stock Return on Index LQ45

Effect of Financial Market Variables on Stock Return on Index LQ45

The Determinants of Share Price on Commercial Bank in Bursa Malaysia

Empirical Evidence from the Indonesia Stock Exchange: The Influence of Debt to Equity Ratio (DER) and Return on Equity (ROE) on Sharia Stock Prices

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