Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange

Supitriyani

doi:doi:10.11648/j.ijls.20180101.13

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Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange

Supitriyani

Published in International Journal of Law and Society (Volume 1, Issue 1)

Received: 6 November 2017 Accepted: 28 November 2017 Published: 24 December 2017

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Abstract

The formulation of this research problem is how the dividend policy, stock price, the value of the company and leverage at Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange are described, and how the influence of dividend policy and stock price to the value of the company with leverage as moderating variable in Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange simultaneously or partially. The research method used in this paper is library research. The Object is a Sub-Sector of Pharmaceutical Company listed in the Indonesia Stock Exchange from 2014 to 2016 which published its audited financial statements successively during the year of research and has never experienced a negative net income position and consistently distributed dividends during the research year, totaling of 5 companies. The data used is qualitative and quantitative data, and data collection techniques by way of documentation. The technique of data analysis uses classical assumption, qualitative and quantitative descriptive analysis. The results of the study can be summarized as follows: 1) There are 5 years of companies whose dividend policy is below average, there are 4 years of companies whose stock price is below the average and 3 years of companies whose value is below average, 2) Results regression testing is Y = 1,702 + 1,211 X₁ + 1,989 X₂ which can be interpreted that there is positive influence between dividend policy and stock price to the value of the Sub Sector of Pharmaceutical company listed in Indonesian Stock Exchange period 2014 until 2016. The strength of relationship of the three variables is medium (r = 0,597). The coefficient of determination is 35.6%, and the remaining 64.4% is explained by other factors. From the results of processing and data calculation, the author concludes that the dividend policy and stock price affect the value of the company in Sub-Sector of Pharmaceutical company listed in the Indonesia Stock Exchange simultaneously or partially and dividend policy and stock price affect the value of the company with leverage as a moderating variable at the Pharmaceutical Sub-sector listed in the Indonesia Stock Exchange simultaneously or partially. Therefore, investors and potential investors should pay attention to the dividend policy and stock price before investing because they are very influential in determining the value of the company and investors and potential investors should pay attention to internal and external factors of the company.

Published in	International Journal of Law and Society (Volume 1, Issue 1)
DOI	10.11648/j.ijls.20180101.13
Page(s)	16-23
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Dividend Policy, Stock Price, The Value of Company, Leverage

References

[1]	Astuti, D. (2004). Corporate finance management. Surabaya: Ghalia Indonesia.
[2]	Brigham, E F. and Joel F. H, (2001). Financial management. 8th edition, book 1, Jakarta: Erlangga.
[3]	Harrison Jr., W E, et. al., (2012). Financial accounting-IFRS, Jakarta: Erlangga.
[4]	Kasmir. (2010). Introduction to financial management, first edition, second print. Jakarta: Prenada Media Group.
[5]	Keown, et. al. (2004). Financial management: Basic principles and applications, ninth edition, volume one. Jakarta: Index of Gramedia Group.
[6]	Martani, et al. (2012). Intermediate financial accounting based on PSAK. Jakarta: Salemba Empat.
[7]	Rudianto. (2009). Introduction to accounting. Jakarta: Erlangga.
[8]	Subramanyam, K. R and John J. W. (2010). Financial statement analysis: Financial statement analysis, book one, edition ten. Jakarta: Salemba Empat.
[9]	Sudana, I M. (2011). Corporate financial management: Theory and practice. Jakarta: Erlangga.
[10]	Sugiono, A. (2009). Corporate financial management theory and practice, Jakarta: Erlangga.
[11]	Syamsuddin, L. (2004). Corporate finance management: Application concept in planning, supervision and decision making, new edition. Jakarta: Raja Grafindo Persada.

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APA Style

Supitriyani. (2017). Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange. International Journal of Law and Society, 1(1), 16-23. https://doi.org/10.11648/j.ijls.20180101.13

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ACS Style

Supitriyani. Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange. Int. J. Law Soc. 2017, 1(1), 16-23. doi: 10.11648/j.ijls.20180101.13

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AMA Style

Supitriyani. Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange. Int J Law Soc. 2017;1(1):16-23. doi: 10.11648/j.ijls.20180101.13

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@article{10.11648/j.ijls.20180101.13,
  author = {Supitriyani},
  title = {Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange},
  journal = {International Journal of Law and Society},
  volume = {1},
  number = {1},
  pages = {16-23},
  doi = {10.11648/j.ijls.20180101.13},
  url = {https://doi.org/10.11648/j.ijls.20180101.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20180101.13},
  abstract = {The formulation of this research problem is how the dividend policy, stock price, the value of the company and leverage at Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange are described, and how the influence of dividend policy and stock price to the value of the company with leverage as moderating variable in Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange simultaneously or partially. The research method used in this paper is library research. The Object is a Sub-Sector of Pharmaceutical Company listed in the Indonesia Stock Exchange from 2014 to 2016 which published its audited financial statements successively during the year of research and has never experienced a negative net income position and consistently distributed dividends during the research year, totaling of 5 companies. The data used is qualitative and quantitative data, and data collection techniques by way of documentation. The technique of data analysis uses classical assumption, qualitative and quantitative descriptive analysis. The results of the study can be summarized as follows: 1) There are 5 years of companies whose dividend policy is below average, there are 4 years of companies whose stock price is below the average and 3 years of companies whose value is below average, 2) Results regression testing is Y = 1,702 + 1,211 X1 + 1,989 X2 which can be interpreted that there is positive influence between dividend policy and stock price to the value of the Sub Sector of Pharmaceutical company listed in Indonesian Stock Exchange period 2014 until 2016. The strength of relationship of the three variables is medium (r = 0,597). The coefficient of determination is 35.6%, and the remaining 64.4% is explained by other factors. From the results of processing and data calculation, the author concludes that the dividend policy and stock price affect the value of the company in Sub-Sector of Pharmaceutical company listed in the Indonesia Stock Exchange simultaneously or partially and dividend policy and stock price affect the value of the company with leverage as a moderating variable at the Pharmaceutical Sub-sector listed in the Indonesia Stock Exchange simultaneously or partially. Therefore, investors and potential investors should pay attention to the dividend policy and stock price before investing because they are very influential in determining the value of the company and investors and potential investors should pay attention to internal and external factors of the company.},
 year = {2017}
}

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TY  - JOUR
T1  - Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange
AU  - Supitriyani
Y1  - 2017/12/24
PY  - 2017
N1  - https://doi.org/10.11648/j.ijls.20180101.13
DO  - 10.11648/j.ijls.20180101.13
T2  - International Journal of Law and Society
JF  - International Journal of Law and Society
JO  - International Journal of Law and Society
SP  - 16
EP  - 23
PB  - Science Publishing Group
SN  - 2640-1908
UR  - https://doi.org/10.11648/j.ijls.20180101.13
AB  - The formulation of this research problem is how the dividend policy, stock price, the value of the company and leverage at Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange are described, and how the influence of dividend policy and stock price to the value of the company with leverage as moderating variable in Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange simultaneously or partially. The research method used in this paper is library research. The Object is a Sub-Sector of Pharmaceutical Company listed in the Indonesia Stock Exchange from 2014 to 2016 which published its audited financial statements successively during the year of research and has never experienced a negative net income position and consistently distributed dividends during the research year, totaling of 5 companies. The data used is qualitative and quantitative data, and data collection techniques by way of documentation. The technique of data analysis uses classical assumption, qualitative and quantitative descriptive analysis. The results of the study can be summarized as follows: 1) There are 5 years of companies whose dividend policy is below average, there are 4 years of companies whose stock price is below the average and 3 years of companies whose value is below average, 2) Results regression testing is Y = 1,702 + 1,211 X1 + 1,989 X2 which can be interpreted that there is positive influence between dividend policy and stock price to the value of the Sub Sector of Pharmaceutical company listed in Indonesian Stock Exchange period 2014 until 2016. The strength of relationship of the three variables is medium (r = 0,597). The coefficient of determination is 35.6%, and the remaining 64.4% is explained by other factors. From the results of processing and data calculation, the author concludes that the dividend policy and stock price affect the value of the company in Sub-Sector of Pharmaceutical company listed in the Indonesia Stock Exchange simultaneously or partially and dividend policy and stock price affect the value of the company with leverage as a moderating variable at the Pharmaceutical Sub-sector listed in the Indonesia Stock Exchange simultaneously or partially. Therefore, investors and potential investors should pay attention to the dividend policy and stock price before investing because they are very influential in determining the value of the company and investors and potential investors should pay attention to internal and external factors of the company.
VL  - 1
IS  - 1
ER  -

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Author Information

Supitriyani

Department of Accounting, Sekolah Tinggi Ilmu Ekonomi (STIE) Sultan Agung, Pematangsiantar, Indonesia

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APA Style

Supitriyani. (2017). Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange. International Journal of Law and Society, 1(1), 16-23. https://doi.org/10.11648/j.ijls.20180101.13

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ACS Style

Supitriyani. Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange. Int. J. Law Soc. 2017, 1(1), 16-23. doi: 10.11648/j.ijls.20180101.13

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AMA Style

Supitriyani. Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange. Int J Law Soc. 2017;1(1):16-23. doi: 10.11648/j.ijls.20180101.13

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@article{10.11648/j.ijls.20180101.13,
  author = {Supitriyani},
  title = {Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange},
  journal = {International Journal of Law and Society},
  volume = {1},
  number = {1},
  pages = {16-23},
  doi = {10.11648/j.ijls.20180101.13},
  url = {https://doi.org/10.11648/j.ijls.20180101.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20180101.13},
  abstract = {The formulation of this research problem is how the dividend policy, stock price, the value of the company and leverage at Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange are described, and how the influence of dividend policy and stock price to the value of the company with leverage as moderating variable in Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange simultaneously or partially. The research method used in this paper is library research. The Object is a Sub-Sector of Pharmaceutical Company listed in the Indonesia Stock Exchange from 2014 to 2016 which published its audited financial statements successively during the year of research and has never experienced a negative net income position and consistently distributed dividends during the research year, totaling of 5 companies. The data used is qualitative and quantitative data, and data collection techniques by way of documentation. The technique of data analysis uses classical assumption, qualitative and quantitative descriptive analysis. The results of the study can be summarized as follows: 1) There are 5 years of companies whose dividend policy is below average, there are 4 years of companies whose stock price is below the average and 3 years of companies whose value is below average, 2) Results regression testing is Y = 1,702 + 1,211 X1 + 1,989 X2 which can be interpreted that there is positive influence between dividend policy and stock price to the value of the Sub Sector of Pharmaceutical company listed in Indonesian Stock Exchange period 2014 until 2016. The strength of relationship of the three variables is medium (r = 0,597). The coefficient of determination is 35.6%, and the remaining 64.4% is explained by other factors. From the results of processing and data calculation, the author concludes that the dividend policy and stock price affect the value of the company in Sub-Sector of Pharmaceutical company listed in the Indonesia Stock Exchange simultaneously or partially and dividend policy and stock price affect the value of the company with leverage as a moderating variable at the Pharmaceutical Sub-sector listed in the Indonesia Stock Exchange simultaneously or partially. Therefore, investors and potential investors should pay attention to the dividend policy and stock price before investing because they are very influential in determining the value of the company and investors and potential investors should pay attention to internal and external factors of the company.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Dividend Policy and Stock Price to the Company Value in Pharmaceutical Company’s Sub Sector Listed in Indonesia Stock Exchange
AU  - Supitriyani
Y1  - 2017/12/24
PY  - 2017
N1  - https://doi.org/10.11648/j.ijls.20180101.13
DO  - 10.11648/j.ijls.20180101.13
T2  - International Journal of Law and Society
JF  - International Journal of Law and Society
JO  - International Journal of Law and Society
SP  - 16
EP  - 23
PB  - Science Publishing Group
SN  - 2640-1908
UR  - https://doi.org/10.11648/j.ijls.20180101.13
AB  - The formulation of this research problem is how the dividend policy, stock price, the value of the company and leverage at Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange are described, and how the influence of dividend policy and stock price to the value of the company with leverage as moderating variable in Sub Sector of Pharmaceutical company listed in Indonesia Stock Exchange simultaneously or partially. The research method used in this paper is library research. The Object is a Sub-Sector of Pharmaceutical Company listed in the Indonesia Stock Exchange from 2014 to 2016 which published its audited financial statements successively during the year of research and has never experienced a negative net income position and consistently distributed dividends during the research year, totaling of 5 companies. The data used is qualitative and quantitative data, and data collection techniques by way of documentation. The technique of data analysis uses classical assumption, qualitative and quantitative descriptive analysis. The results of the study can be summarized as follows: 1) There are 5 years of companies whose dividend policy is below average, there are 4 years of companies whose stock price is below the average and 3 years of companies whose value is below average, 2) Results regression testing is Y = 1,702 + 1,211 X1 + 1,989 X2 which can be interpreted that there is positive influence between dividend policy and stock price to the value of the Sub Sector of Pharmaceutical company listed in Indonesian Stock Exchange period 2014 until 2016. The strength of relationship of the three variables is medium (r = 0,597). The coefficient of determination is 35.6%, and the remaining 64.4% is explained by other factors. From the results of processing and data calculation, the author concludes that the dividend policy and stock price affect the value of the company in Sub-Sector of Pharmaceutical company listed in the Indonesia Stock Exchange simultaneously or partially and dividend policy and stock price affect the value of the company with leverage as a moderating variable at the Pharmaceutical Sub-sector listed in the Indonesia Stock Exchange simultaneously or partially. Therefore, investors and potential investors should pay attention to the dividend policy and stock price before investing because they are very influential in determining the value of the company and investors and potential investors should pay attention to internal and external factors of the company.
VL  - 1
IS  - 1
ER  -

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