Published date: Jul 18 2023

Journal Title: KnE Social Sciences

Issue title: Transdisciplinary Symposium on Business, Economics, and Communication (TSBEC 2022)

Pages: 520–531

DOI: 10.18502/kss.v8i12.13701

Wufron Wufronwufron@uniga.ac.idUniversitas Garut, Garut, Indonesia

Neng Silva Siti ParwatiUniversitas Garut, Garut, Indonesia

Nizar Alam HamdaniUniversitas Garut, Garut, Indonesia

Wulan Sri UtamiUniversitas Garut, Garut, Indonesia

The purpose of this study was to examine the effect of stock prices and firm size on dividend policy in manufacturing companies in Indonesia. In this quantitative researchinferential statistical analysis was used to test hypotheses. Based on certain criterias, purposive sampling technique was used. The data were taken from the company’s financial statements from 2018 to 2021. The data were analyzed using multiple regression analysis in order to test the research model and the influence between variables. The results showed that the stock price and firm size on dividend policy is a fit research model. Stock prices had a positive effect on dividend policy, whereas firm size had a negative effect on dividend policy. Stock prices had a significant effect on dividend policy,while firm size had a significant effect on dividend policy. The findings in this study showed that the assets of manufacturing companies in Indonesia during 2018 to 2021 experienced fluctuations, this will directly affect the welfare of investors. The importance of this research is to jointly maintain the existence of all manufacturing companies in Indonesia because companies engaged in the manufacturing sector are very influential in the economic sector.

Keywords: company size, dividend policy, manufacturing sector company, stock price

[1] Mawardi W. Determinants of the stock price volatility in the Indonesian manufacturing sector. International Research Journal of Business Studies. 2018;11(3):179-193.

[2] Musthafa H. Manajemen keuangan. Penerbit Andi; 2017.

[3] Samsul M. Pasar Modal dan Manajemen Portofolio. Edisi 2. Surabaya: Erlangga; 2015.

[4] Septiani M, Ariyani N, Ispriyahadi H. The effect of stock prices, return on assets, and firm size on dividend payout ratio: Evidence from Indonesian financial service companies. Diponegoro International Journal of Business. 2020;3(1):17-27.

[5] Maghfiroh A, Lukiana N, Irdiana S. Dampak Kinerja Keuangan, Harga Saham terhadap Kebijakan Dividen yang Masuk di Idx High Dividend 20. In Progress Conference. 2019;2(1):373-382.

[6] Ariwinata IPS, Badjra IB. Profitability, company size, and gross domestic product on dividend policy (empirical study of service companies on the Indonesia stock exchange). American Journal of Humanities and Social Sciences Research. 2021;5(4):549-554.

[7] Purwanti T. The effect of profitability, capital structure, company size, and dividend policy on company value on the Indonesia stock exchange. International Journal of Seocology. 2020:060-066.

[8] Febrianti D, Zulvia Y. Pengaruh Struktur Kepemilikan, Leverage, Ukuran Perusahaan Terhadap Kebijakan Dividen Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2013-2017. Jurnal Ilmiah Mahasiswa Ekonomi Manajemen. 2020;5(1):201-219.

[9] Su’un SU. Effect of ownership structure, company size and profitability on dividend police manufacturing company’s value in Indonesia Stock Exchange. Australian Journal of Basic and Applied Sciences. 2015;9(20):618-624.

[10] Atiningsih S, Izzaty KN. The effect firm size on company value with profitability as intervening variable and dividend policy as moderating variable. International Journal of Economics, Business and Accounting Research (IJEBAR). 2021;5(4).

[11] Aini DN, Wijaya C, Nugroho BY. Analisis interest rate, stock returns, dan Implied volatility terhadap credit default swap (CDS) di Indonesia. Fakultas Ilmu Sosial dan Ilmu Politik Universitas Indonesia; 2012.

[12] Harahap AK. Pengaruh Earning Per Share dan Harga Saham terhadap Dividen Kas Perusahaan Manufaktur di Bursa Effek Indonesia Tahun 2006-2008. Jurnal Manajemen dan Bisnis. 2011;1(2).

[13] Nguyen DT, Bui MH, Do DH. The relationship of dividend policy and share price volatility: A Case in Vietnam. Annals of Economics & Finance. 2019;20(1).

[14] Hussainey K, Oscar Mgbame C, Chijoke Mgbame AM. Dividend policy and share price volatility: UK evidence. Journal of Risk Finance. 2011;12(1):57-68. https://doi.org/10.1108/15265941111100076

[15] Darmadji T, Fakhruddin HM. Pasar Modal di Indonesia. Edisi 3. Jakarta: Salemba Empat; 2012.

[16] Sujarweni VW. Kupas Tuntas Penelitian Akuntansi dengan SPSS. Yogyakarta: Pustaka Baru Press; 2016.

[17] Riyanto B. Dasar-Dasar Pembelanjaan Perusahaan. Edisi Keempat. BPFEYogyakarta; 2013.

[18] Darmawan M. Dividend omission announcement effect to market reaction in Indonesia Stock Exchange. Published in: Integrated Journal of Business and Economics. 2018;2(2):14-28.

[19] Sartono A. Manajemen keuangan teori dan aplikasi, Edisi Empat. Yogyakarta: BPFE; 2012.

[20] Sugiyono. Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta; 2018.

[21] Brigham EF, Houston JF. Dasar-Dasar Manajemen Keuangan . Edisi 11 Jilid 2. Jakarta: Salemba Empat; 2011.

[22] Wonggo F. Analisis Pengaruh Profitabilitas, Leverage Dan Harga Saham Terhadap Kebijakan Dividen Tunai (Studi Pada Perusahaan Lq-45 Di Bursa Efek Indonesia Periode 2009–2013). Jurnal Berkala Ilmiah Efisiensi. 2016;16(1):40-52.

[23] Gusni G. The determinants of dividend policy: A study of financial industry in Indonesia. Jurnal Keuangan dan Perbankan. 2017;21(4):197346.

[24] Jahfer A, Mulafara AH. Dividend policy and share price volatility: Evidence from Colombo stock market. International Journal of Managerial and Financial Accounting. 2016;8(2):97-108.

[25] Wahyuliza S, Fahyani R. Pengaruh pertumbuhan perusahaan, ukuran perusahaan, struktur modal dan return on equity terhadap kebijakan dividen pada perusahaan manufaktur yang Terdaftar di bursa efek indonesia. Jurnal Benefita: Ekonomi Pembangunan, Manajemen Bisnis & Akuntansi. 2019;4(1):78-86.