Title: ANALYSIS OF DIVIDEND POLICY AND ITS INFLUENCE ON STOCK PRICES OF MANUFACTURING COMPANIES IN INDONESIA WHICH ARE LISTED TO THE JAKARTA STOCK EXCHANGE

Author: I Komang Winatha

Item Type : Thesis (Thesis)

Affiliations: Master of Management Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

 

Abstract

 

The capital market in Indonesia is experiencing very rapid development, this is characterized by very high trading volume and trading frequency, as well as the increasing number of investors who are interested in investing in Indonesia. Investors who invest certainly hope to obtain two benefits, namely dividends and capital gains. For companies that are able to provide increasing cash dividend payments, this means that the company has good prospects in the future and the value of the company will increase. The increase in company value can be observed from one side, namely the increase in the price per share of the company concerned on the Capital Market. . Furthermore, the research carried out aims to determine the influence of earnings per share, cash ratio, debt to equity ratio, growth of sales, growth of assets, corporate tax, size of firm, and dividend payout ratio on the price per share width. The total population in this study was 34 manufacturing companies and the sample was taken as 50% or 17 companies, sampling was carried out using simple random sampling. To analyze the data in the research, Path Analysis was used. The research results show that: (1) The independent variables earnings per share, growth of sales, and corporate tax have a direct influence on dividend policy, this can be proven from the analysis results obtained through Path Analysis which is shown by the magnitude of the probability of each path as The following are the p18 path of p = 0.042, the p83 path of p = 0.007, and the p86 path of p = 0.000. (2) The independent variables Earning per share, debt to equity ratio, Corporate tax, and dividend payout ratio have a direct influence on share prices, this is evident from the analysis results which are shown by the magnitude of the probability of each path, namely path p91 with p = 0.004, path p93 with p = 0.001, path p96 with p = 0.015, and path p98 with p = 0.033. Dividend policy has the greatest influence on share prices as shown by the regression results which have a probability of 0.005. The conclusions of this research are (1) there is a direct and significant influence of Earnings per share, Growth of sales, and Corporate tax on dividend policy. (2) there is a direct and significant influence of Earning per share, Debt to equity ratio, Corporate tax, and Dividend payout ratio on share prices, (3) dividend policy has the greatest influence on share prices. 

 

Keywords: DIVIDENDS; STOCK-PRICES; STOCK-EXCHANGES

 

Sources: http://repository.unair.ac.id/34825/