Analysis Of The Effect Of Stock Split, Dividend Per Share, Earnings Per Share, And Company Size On Changes In Stock Prices With Systematic Risks As Moderating Variables In Go Public Companies Listed On The Indonesia Stock Exchange

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**Analysis of the Effect of Stock Split, Dividend Per Share, Earnings Per Share, and Company Size on Changes in Stock Prices with Systematic Risks as Moderating Variables in Go Public Companies Listed on the Indonesia Stock Exchange**

Introduction

The decision to buy or sell shares in the investment world is often influenced by various complex factors. Investors and company managers need to understand the impact of these factors on stock prices to make informed decisions. This study aims to analyze the effect of four key variables - stock split, dividend per share (DPS), earnings per share (EPS), and company size - on changes in stock prices in companies listed on the Indonesia Stock Exchange. Additionally, this study considers systematic risks as moderating variables that can affect the relationship between these variables.

Research Methodology

This study uses a study design that observes a population of 134 companies. To obtain representative samples, researchers use the purposive sampling method, where the selection of samples is based on certain criteria that have been predetermined. Finally, there were 62 companies chosen as samples in this study. The data collected will be analyzed using several statistical methods, including descriptive, classical assumption test, and multiple regression analysis to test the relationship between the variables studied.

The Role of Stock Split in Changes in Stock Prices

Stock split is a common practice in the stock market, where a company divides its existing shares into a larger number of shares. This can make the stock more affordable for investors and increase its liquidity. However, the results of this study indicate that stock split has a negative and significant influence on changes in stock prices. This may be caused by market perceptions that consider stock split as a sign that the company cannot provide better performance in a fundamental manner. Investors may view stock split as a sign of weakness or a lack of confidence in the company's ability to grow its earnings.

The Role of Dividend Per Share (DPS) in Changes in Stock Prices

Conversely, DPS has a positive and significant influence on changes in stock prices. Dividend payments are often considered as a signal of the company's financial health, so as to increase investor confidence and encourage stock demand. Investors may view DPS as a sign of the company's ability to generate cash and distribute it to shareholders. This can increase investor confidence and lead to an increase in stock prices.

The Role of Earnings Per Share (EPS) in Changes in Stock Prices

Although EPS is generally considered as an indicator of the company's financial health, the results show that EPS has a negative and significant influence on changes in stock prices. This can happen if investors expect greater growth than expressed through existing EPS numbers. Investors may view EPS as a sign of the company's ability to grow its earnings, but if the actual growth is lower than expected, it can lead to a decrease in stock prices.

The Role of Company Size in Changes in Stock Prices

Larger sizes are often associated with better stability and reputation in the market. This can lead to an increase in stock prices as investors view the company as more stable and less risky. However, the results of this study show that company size has a negative and significant influence on changes in stock prices. This may be caused by market perceptions that consider larger companies as less agile and less able to adapt to changes in the market.

The Role of Systematic Risk in Changes in Stock Prices

Systematic risk functions as a moderating variable in the relationship between stock split, DPS, EPS, and company size to changes in stock prices. The results show that simultaneously, systematic risk can moderate the effect of these variables. However, partially, systematic risk does not function to moderate the relationship between stock split, DPS, and EPS with changes in stock prices. This shows that systematic risks may play a more role in a broader market context than in individual analysis of each variable.

Conclusion

This study provides valuable insight for investors and company managers about how various factors affect stock prices on the Indonesia Stock Exchange. Although there is a significant effect of several variables, the results also show that it is important for investors to consider a broader market context and systematic risk in making investment decisions. Further research is needed to explore this relationship deeper and explore other factors that might affect stock prices.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Investors should consider a broader market context and systematic risk when making investment decisions.
  2. Company managers should consider the impact of stock split, DPS, EPS, and company size on changes in stock prices when making decisions about these variables.
  3. Further research is needed to explore the relationship between systematic risk and changes in stock prices.
  4. Other factors that might affect stock prices, such as market sentiment and economic conditions, should be explored in future research.

Limitations of the Study

This study has several limitations that should be noted. Firstly, the study only considers a population of 134 companies listed on the Indonesia Stock Exchange. Secondly, the study only considers four variables - stock split, DPS, EPS, and company size - and does not consider other factors that might affect stock prices. Finally, the study only considers systematic risk as a moderating variable and does not consider other types of risk that might affect stock prices.

Future Research Directions

Future research should aim to explore the relationship between systematic risk and changes in stock prices in more detail. This could involve considering other types of risk, such as idiosyncratic risk, and exploring the impact of market sentiment and economic conditions on stock prices. Additionally, future research could aim to explore the impact of other factors that might affect stock prices, such as corporate governance and executive compensation.