Analysis of the effect of dividend policy and profitability on stock price

https://doi.org/10.35912/jomabs.v1i4.2306
Published: Jul 26, 2024

Abstract:

Purpose: This study tests the hypothesis that dividend policy and profitability affect stock prices in food and beverage subsector companies listed on the Indonesia Stock Exchange (IDX).

Research Methodology: A quantitative approach with purposive sampling was used, selecting 15 companies (45 data points). Data were analyzed using classical assumption tests, multiple linear regression, t-tests, F-tests, and the coefficient of determination (R²). Secondary data were obtained from the official IDX reports.

Results: The findings show that dividend policy and profitability significantly affect stock prices (sig = 0.000 < 0.05). Partially, dividend policy significantly affects stock prices (sig = 0.021 < 0.05), while profitability has a stronger and significant effect (sig = 0.000 < 0.05). The model explains 63% of the variation in the stock prices.

Conclusions: Dividend policy and profitability are key determinants of stock price movements in the food and beverage subsector, with profitability exerting a greater influence.

Limitations: This study is aimed only at Food and Beverage subsector companies listed on the IDX during the period 2020-2022.

Contribution: This research is expected to be useful as a reference material in the same research and further research at PGRI University Palembang and is expected to be used as input for research sites to make decisions about the effects of dividend policy and profitability on stock prices in food and beverage subsector companies listed on the IDX.

Keywords:
1. Dividend Policy
2. Profitability
3. Stock Price
Authors:
1 . Cahya Eka Wulandari
PGRI University Palembang, Indonesia
2 . Hendry Saladin
PGRI University Palembang, Indonesia
3 . Agus Mulyani
PGRI University Palembang, Indonesia
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How to Cite
Wulandari, C. E., Saladin, H., & Mulyani, A. (2024). Analysis of the effect of dividend policy and profitability on stock price. Journal of Multidisciplinary Academic Business Studies, 1(4), 237–243. https://doi.org/10.35912/jomabs.v1i4.2306
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Issue & Section
Vol. 1 No. 4 (2024): August
Articles
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References

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  1. Abraham, R., Harris, J., & Auerbach, J. (2017). Earnings yield as a predictor of return on assets, return on equity, economic value added and the equity multiplier. Modern Economy, 8(1), 10. doi:https://doi.org/10.4236/me.2017.81002
  2. Adnyana, I. M. (2020). Buku: Manajemen Investasi dan Portofolio.
  3. Ardiansyah, A. T., Yusuf, A. A., & Martika, L. D. (2020). Pengaruh Kebijakan Dividen, Profitabilitas Dan Struktur Modal Terhadap Harga Saham. Jurnal Ekonomi, Akuntansi & Manajemen, 1(1).
  4. Belk, R., Humayun, M., & Brouard, M. (2022). Money, possessions, and ownership in the Metaverse: NFTs, cryptocurrencies, Web3 and Wild Markets. Journal of Business Research, 153, 198-205. doi:https://doi.org/10.1016/j.jbusres.2022.08.031
  5. Darmawan, D. (2018). Manajemen Keuangan: Memahami Kebijakan Dividen, Teori dan Praktiknya di Indonesia. Penerbit Universitas Islam Negeri Sunan Kalijaga.
  6. Deitiana, T., Yap, S., & Ersania, E. (2021). Dividend Payout Ratio Dan Faktor Yang Mempengaruhinya Pada Perusahaan Makanan Dan Minuman Di Bursa Efek Indonesia. Media Bisnis, 12(2), 119-126. doi:https://doi.org/10.34208/mb.v12i2.916
  7. Dewi, N. L. P. S. U., & Sudiartha, I. G. M. (2019). Pengaruh profitabilitas, likuiditas, leverage, dan ukuran perusahaan terhadap return saham pada perusahaan food and beverage. Udayana University.
  8. Emmanuel, O. O. (2021). The dynamics of work environment and its impact on organizational objectives. Annals of Human Resource Management Research, 1(2), 145-158. doi:https://doi.org/10.35912/ahrmr.v1i2.826
  9. Hadiwijaya, H., & Yustini, T. (2023). Analysis of consumer preferences towards digital marketing and its implications on the competitive advantage of SMEs in Banyuasin Regency. Annals of Human Resource Management Research, 3(2), 83-96. doi:https://doi.org/10.35912/ahrmr.v3i2.1838
  10. Hery, H. (2016). Analisis Laporan Keuangan: Integrated And Comprehensive Edition: Gramedia Widiasarana Indonesia.
  11. Jallow, M. A., Abiodun, N. L., Weke, P., & Aidara, C. A. T. (2022). Efficiency of Financial Ratios in Predicting Stock Price Trends of Listed Banks at Nairobi Securities Exchange. European Journal of Statistics, 2, 9-9. doi:https://doi.org/10.28924/ada/stat.2.9
  12. Kanakriyah, R. (2020). Dividend policy and companies' financial performance. The Journal of Asian Finance, Economics and Business, 7(10), 531-541. doi:https://doi:10.13106/jafeb.2020.vol7.no10.531
  13. Kirimi, M. (2024). The Effects of Financial Metrics on Stock Price Volatility of Listed Stocks at Nairobi Securities Exchange Market. University of Nairobi.
  14. Latifah, H. C., & Suryani, A. W. (2020). Pengaruh kebijakan dividen, kebijakan hutang, profitabilitas, dan likuiditas terhadap harga saham. Jurnal Akuntansi Aktual, 7(1), 31-44.
  15. Lee, C.-C. (2023). Analyses of the operating performance of information service companies based on indicators of financial statements. Asia Pacific Management Review, 28(4), 410-419. doi:https://doi.org/10.1016/j.apmrv.2023.01.002
  16. Levina, S., & Dermawan, E. S. (2019). Pengaruh Profitabilitas, Likuiditas, Solvabilitas, Aktivitas, Dan Kebijakan Dividen Terhadap Harga Saham. Jurnal Paradigma Akuntansi, 1(2), 381-389. doi:https://doi.org/10.24912/jpa.v1i2.5100
  17. Liviani, R., & Rachman, Y. T. (2021). The influence of leverage, sales growth, and dividend policy on company value. International Journal of Financial, Accounting, and Management, 3(2), 165-178. doi:https://doi.org/10.35912/ijfam.v3i2.189
  18. Nadyayani, D. A. D., & Suarjaya, A. A. G. (2021). The effect of profitability on stock return. American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), 695-703. doi:https://doi.org/10.1108/IJOEM-04-2021-0539
  19. Sugiyono, P. (2019). Metode Penelitian Kuantitatif Kualitatif dan R&D. Bandung: Alfabeta.
  20. Sugiyono, S. (2020). Metodologi Penelitian Kualitatif. Bandung: Alfabeta.
  21. Tanha, M., Siddique, M. A., Nurulhoque, M., Sumon, M. M. I., Sazin, R., & Hossain, P. (2023). Rohingya refugees and its impact on informal economy: Cox's Bazar, Bangladesh. Journal of Governance and Accountability Studies (JGAS), 3(1), 63-83. doi:https://doi.org/10.35912/jgas.v3i1.1896
  22. Tannadi, B. (2020). Ilmu Saham: Pengenalan Saham: Elex Media Komputindo.
  23. Wahjudi, E. (2020). Factors affecting dividend policy in manufacturing companies in Indonesia Stock Exchange. Journal of Management Development, 39(1), 4-17. doi:https://doi.org/10.1108/JMD-07-2018-0211
  24. Whetyningtyas, A., Arumsari, N. R., Ashari, A., & Mulyani, S. (2024). Profitability and growth opportunity: Impact on company value. International Journal of Financial, Accounting, and Management, 6(4), 559-572. doi:https://doi.org/10.35912/ijfam.v6i4.2614
  25. Widoatmodjo, S. (2001). Cara Sehat Investasi Manajemen Portofolio. Edisi Pertama. Yogyakarta. BPFE.