Profitability, Dividend Policy and Stock Price Volatility: Indonesia Stock Exchange
Irma Setyawati, Doni Purnama Alamsyah, Khusnul Khotimah

University of Bhayangkara Jakarta Raya,
University of BSI
Institute Business and Informatics Kosgoro 1957

Abstract

The purpose of this study is to analyze profitability and dividend policy in predicting stock price volatility of property manufacturing companies with real estate and property sub-sector and building construction which listed in the Indonesia Stock Exchange period 2009-2015. The data taken in the form of corporate financial statements, while the company used as research samples taken using a purposive random sampling technique. This research found that return on asset and dividend payout ratio have positive and significant effect to the company stock price. Thus, both management and investors are very concerned about changes in stock prices, then research can provide a way to find the dominant factor in volatility of stock prices and which should be considered by investors before making investment decisions, and the management in formulating the dividend policy for the company.

Keywords: dividend policy, probability, volatility stock price, Indonesia Stock Exchange

Topic: Financial Management and Accounting