IJRR

International Journal of Research and Review

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Research Paper

Year: 2022 | Month: June | Volume: 9 | Issue: 6 | Pages: 278-289

DOI: https://doi.org/10.52403/ijrr.20220630

The Effect of Financial Performance on Stock Prices with Dividend Policy as a Moderating Variable in Consumer Goods Industry Sector of Manufacturing Companies Listed on the Indonesia Stock Exchange

Novitawati Hutagaol1, Erlina1, Rujiman1

1Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia .

Corresponding Author: Novitawati Hutagaol

ABSTRACT

This study aims to examine and analyze the effect of the current ratio, debt to equity ratio, price to book value, return on equity on stock prices, and dividend policy as a moderator in manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange in 2016-2020. This study uses secondary data with a sample of 23 companies using the purposive sampling method. In this research, the data analysis technique used panel data regression analysis using the Stata 14 application program. The analysis model used was random effects with the generalized least squares (GLS) estimation method.
The regression results from this study indicate that PBV has a partially positive and significant effect on stock prices, and DER has a negative and significant effect on stock prices. In contrast, CR and ROE have a partially negative and insignificant effect on stock prices. The dividend policy can only moderate the effect of CR and DER on stock prices in manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange from 2016 to 2020.

Keywords:Current Ratio, Debt to Equity Ratio, Price to Book Value, Return on Equity, Dividend Policy.

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