PENGARUH KINERJA KEUANGAN, KEBIJAKAN DIVIDEN,DAN UKURAN PERUSAHAAN TERHADAP RESPON INVESTOR

Abstract

This research aimed to determine: (1) the effect of firm size on investors’ response, (2) the effect of dividend policy
on investors’ response, and (3) the effect of financial performance on investors’ response. Moreover, the research
was quantitative. The data were secondary in the form of annual reports. The population was all companies listed on
the Indonesia Stock Exchange (IDX) during 2017-2021. Furthermore, the data collection technique used purposive
sampling. The data analysis technique used multiple regression, classical assumption tests; namely normality,
multicollinearity, heteroscedasticity, and autocorrelation tests, and hypothesis tests which included f and t-tests.
The result showed that (1) firm size had a positive effect on investors’ response, This meant that the higher the firm
size was, the higher the investors’ intention to invest; (2) dividend policy did not affect investors’ response. It
meant a level of shared dividend was not the main factor deciding investors to invest. Though the company’s profit
was not shared regularly, some investors still intended to invest; (3) financial performance did not affect investors’
response. This indicated that the higher companies’ performance which was measured by Return On Equity was
not a determinant factor for the investors to invest.