ANALYSIS ON THE IMPACT OF FIRM SIZE, RETURN ON EQUITY, DEBT TO EQUITY RATIO, AND DIVIDEND PAY-OUT RATIO TOWARDS STOCK PRICE ON LQ45 COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

ARI PRAWIRO, FIONA ERNESTINA, ESTY YUSTINA SIBURIAN (2022) ANALYSIS ON THE IMPACT OF FIRM SIZE, RETURN ON EQUITY, DEBT TO EQUITY RATIO, AND DIVIDEND PAY-OUT RATIO TOWARDS STOCK PRICE ON LQ45 COMPANIES LISTED IN INDONESIA STOCK EXCHANGE , SKRIPSI, UNIVERSITAS PRIMA INDONESIA

ABSTRAK

This Research use simultaneous or sequential approach to find the impact of firm size, return on equity, debt to equity ratio, and dividend pay-out ratio towards stock price. This research uses quantitative approach, such as linear regression. 64 companies that act as the population was further filtered by using purposive sampling method which results in 27 companies left and with the total of 4-year financial year, the total sample for this research is amount to 108. Adjusted R square amount to 0.566 means that the independent variable (firm size, return on equity, debt to equity ratio, and dividend pay-out ratio) only explained 56.6% of the dependent variable. The rest 44.4% is being explained by other variables that was not in this research. The partial test identify that partially firm size has a significant positive impact on the stock price, return on equity does not have a significant impact towards stock price, but has a positive relationship. Debt to equity ratio have a significant negative impact towards stock price, and dividend pay-out ratio partially does not have impact on stock price and have a negative relationship. Simultaneously, firm size, return on equity, debt to equity ratio, and dividend pay-out ratio have a significant impact towards stock price on companies that was listed in LQ45 index in Indonesia Stock Exchange.

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