The Influence of Dividend Policy (Dividend Payout Ratio and Dividend Yield) on Stock Price Volatility (A Study of Energy Sector Companies Listed on the Indonesia Stock Exchange)

Gema Merdeka Goeyardi (Universitas Narotama, Surabaya, Indonesia)
Chriestine Ayu Ashari (Universitas Narotama, Surabaya, Indonesia)
Agus Sukoco (Universitas Narotama, Surabaya, Indonesia)

Jurnal Scientia
Vol. 13 No. 02 (2024): Education and Sosial science, March - May 2024

This study aims to analyze the impact of dividend policy proxied by the Dividend Payout Ratio (DPR) and Dividend Yield (DY) on stock price volatility in energy sector companies listed on the Indonesia Stock Exchange (IDX). This research employs a quantitative method with a causal-comparative approach. The sample was selected using purposive sampling. Secondary data were obtained from annual financial reports and stock performance summaries published by the IDX. Data analysis was conducted using multiple linear regression with SPSS version 21 software. The results indicate that, individually, the Dividend Payout Ratio (DPR) does not have a significant effect on stock price volatility in energy sector companies. Conversely, Dividend Yield (DY) was found to have a positive and significant impact on stock price volatility. These findings suggest the existence of a "dividend trap" phenomenon in the energy sector, where high yields driven by a decline in the underlying stock price elicit an aggressive market response, thereby escalating stock price volatility in the secondary market.