PENGARUH PROFITABILITAS DAN KEBIJAKAN DIVIDEN TERHADAP RESPON INVESTOR

Abstract

This research aimed to examine the effect of profitability and dividend policy on the investors’response. While, the data collection
technique used purposive sampling. In line with, there were 16 manufacturing companies as sample, which were listed on
Indonesia Stock Exchange for four years (2014-2017). Moreover, the data analysis technique used multiple linear regression.
Furthermore, the research result concluded as follows: (a) ROA had positive effect on the investors’response. It meant, companies
which were able to have profits in the future would interest theinvestors to invest their money This research aimed to examine the
effect of profitability and dividend policy on the investors’. As consequence, the shares' price would like to increase also. (b) ROE
had positive effect on the investors response. In other words, ROE indicated as the return were high, the investors would like to
buy the shares. This made the shares price would increase. (c) DPR did not affect the investors’ response. It meant, investors
thought higher dividend did not guarantee a better company future prospect. Therefore, they were preferred having capital gains
to waiting the dividend, which would like to be given for company.
Keywords: profitability, dividen policy, shares price