The Influence of Internal and External Variables on Stock Price Volatility in the Manufacturing Sector in Indonesia

Abstract

The problem with this study is that dividend policy, firm size, earnings per share, inflation, and exchange rate, all play important roles in stock price volatility and are important factors in determining financial planning decisions. The purpose of this study was to analyze the impact of stock price volatility on 45 manufacturing companies listed on the Indonesian Stock Exchange from 2016 to 2022. The methodology of this study was panel data regression analysis, using this type of time series data and a cross section of his data processing program using EViews 9, leading to a fixed effects model. The results and contributions of this study were in dividend payout ratio, dividend yield, firm size, leverage, earnings per share, inflation, and exchange rate variables all have a large impact on stock price volatility. Leverage and inflation variables had impact, but company size, payout ratio, dividend yield, earnings per share and price did not have impact on stock price volatility. The conclusion of this study was that corporate management can help increase stock price volatility by considering more important variables that affect stock price volatility. It also serves as an investment decision consideration for investors to predict which companies can generate the greatest returns.