Dividend Policy and Solvency Effects on Stock Returns of Manufacturing Companies
S. Sulastri, Maya Sari, E. Rismayanti

Universitas Pendidikan Indonesia

Abstract

This study aimed to analyze the effect of dividend policy in the proxy with Dividend Payout Ratio (DPR) and solvency in the proxy with Debt to Equity Ratio (DER) on Stock Returns of manufacturing companies listed on the Indonesia Stock Exchange in the period of 2014-2018. Ratio analysis is one of the analyses used by investors to analyze a company’s stock performance. This study used a quantitative method. The sampling technique used a purposive sampling method and the sample was selected in accordance with predefined criteria. To obtain samples of 10 manufacturing companies, they were selected from a population of 144 manufacturing companies incorporated in the Indonesia Stock Exchange in the period of 2014-2018. The data used in this study was financial statement data and sources used to obtain these data were the Indonesian Capital Market Directory (ICMD) accessed from www.idx.co.id. The data analysis model used was panel data regression. The results of this study showed that the Dividend Payout Ratio and Debt to Equity Ratio had a significant effect on stock returns.

Keywords: dividend policy, solvency, stock returns

Topic: Financial Management and Accounting