Dividend Policy and Share Price Volatility: Evidence from Companies Listed in Indonesia Stock Exchange

Laksana Sadewo, Puger B1024151015

Jurnal Manajemen Update
Vol 8, No 4 (2019): Jurnal Mahasiswa Manajemen

This study analyzed the importance of dividend policy which has been attracting shareholders’ attention as it might determine the return that they could earn. On the other hand, investors might have differences in their investing decision, mainly to their preference toward how volatile the company’s shares price. Share price volatility (SPV) is used as dependent variable, while the independent variables of dividend policy are measured by dividend yield (DY), dividend payout ratio (DPR), assets growth (AG), leverage (LV), firm’s size (FS), and earnings volatility (EV). The data are estimated by using regression on panel data EGLS (cross-section weight) with the basis of Fixed Effect Model. The result indicates a mixed result. Dividend yield and dividend payout ratio have a positive effect toward share price volatility, although only dividend payout ratio which has significant impact. 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