The Role of Dividend Policy in Inventing the Effect of Accounting Profit, Cash Flow, Operation and Corporate Size on the Price of Closing Stock

Murtiadi Awaluddin,Rulyanti Susi Wardhani,Febriani Setijawan,Muh Akil Rahman

doi:10.11594/baarj.01.01.01

Murtiadi Awaluddin, Rulyanti Susi Wardhani + Show 2 more

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https://doi.org/10.11594/baarj.01.01.01

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Abstract

This study aims to determine the effect of accounting profit, operating cash flow and company size on the closing price of shares through dividend policy on consumer goods industry companies on the Indonesia Stock Exchange. This research uses quantitative methods and types of explanatory research, with 2016-2018 observation years in 17 company samples. The results showed (1) Accounting profit and operating cash flow had a positive and significant effect on dividend policy, while the size of the company had no influence on dividend policy. (2) Accounting profit and operating cash flow have no effect on the closing price of shares, while the size of the company has a positive and significant effect on the closing price of shares. (3) Dividend policy has a positive and significant effect on the closing price of shares. (4) There is no indirect effect of dividend policy in mediating accounting profit and operating cash flow on the closing price of shares, but there is an indirect effect of dividend policy in mediating company size on the closing price of shares

Highlights

IntroductionThe capital market in general can be identified with a place where capital is traded between parties who have excess capital (investors) with people who need capital (issuer) by developing capital market investment has an important role and is an integral part of a country's economy
The capital market in general can be identified with a place where capital is traded between parties who have excess capital with people who need capital by developing capital market investment has an important role and is an integral part of a country's economy
(4) There is no indirect effect of dividend policy in mediating accounting profit and operating cash flow on the closing price of shares, but there is an indirect effect of dividend policy in mediating company size on the closing price of shares

Summary

Introduction

The capital market in general can be identified with a place where capital is traded between parties who have excess capital (investors) with people who need capital (issuer) by developing capital market investment has an important role and is an integral part of a country's economy. The capital market in Indonesia is increasingly growing rapidly, marked by the increasing number of companies registering on the stock exchange. As this activity increases, the need to provide more complete information to investors regarding the development of the stock exchange is growing one of the necessary information increases is the stock price index as a reflection of stock price movements. JCI (Composite Stock Price Index), serves as an indicator of capital market trends, meaning that. The Role of Dividend Policy in Inventing the Effect of Accounting Profit, Cash Flow, Operation and Corporate Size on the Price of Closing Stock.

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