PENGARUH RASIO KEUANGAN TERHADAP REAKSI PASAR DENGAN KEBIJAKAN DIVIDEN SEBAGAI VARIABEL INTERVENING

Abstract

This research examines the effect of financial ratios on market reaction, with dividend policy as an intervening variable at Food and Beverages companies listed on the Indonesia Stock Exchange during 2017-2021. The research applies quantitatively with secondary data, in the form of companies’ annual financial statements. Furthermore, the data collection technique used was purposive sampling. In line with this, 50 companies with 5 years (2017-2021) of observation were selected as samples. Moreover, the data analysis technique used was multiple linear regression with the Sobel test. The result shows that neither profitability nor liquidity affects market reaction. However, solvability has a positive effect on market reaction. It meant that the level of companies’ solvability can affect market reaction. Additionally, profitability as well as liquidity do not influence the dividend policy fluctuation. Meanwhile, solvability has a negative effect on dividend policy. In other words, the higher the solvability level was, the lower the dividend policy would be, and vice versa. In brief, dividend policy cannot mediate the relationship between profitability, solvability, and liquidity on market reaction.