The Effect of Profitability, Leverage, and Dividend Policy on Stock Price Share

(Study of Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange 2018-2022)

Abstract

Since the share price is a representation of a firm's worth, higher share prices correspond to higher company values. Although supply and demand in the capital market might influence stock prices, the company's long-term goal in issuing these shares is undoubtedly to raise funds. Determining the impact of leverage, dividend policy, also profitability on the share price of the food and beverage subsector written on the IDX between 2018 and 2022 is the goal of this study. The study population consisted of firms in the food and beverage sub-sector that were written on the IDX and provided financial statements for the years 2018 through 2022. The sample used in this research includes thirteen companies over a five-year period, with data analyzed using sixty-five data points using a technique called purposive sampling. This study use the regression analysis of panel data method. According to the study's findings, the factors of profitability, leverage, also dividend policy all have a major impact on the share price of firms in the food and beverage subsector that are written on the IDX between 2018 and 2022. For the food and beverage sub-sector written on the IDX in 2018–2022, the leverage variable and dividend policy have no substantial impact on stock prices; only the profitability variable has a partial effect on stock prices. It is advised that future researchers use alternative business sectors for their examinations of the independent and dependent variables, or use different independent variables within the same firm sector.

Keywords-dividend policy, leverage, profitability, share price