Accounting

Study On Dividend Policy: Antecedent and Its Impact On Share Price Werner R. Murhadi Universitas Surabaya ABSTRACT This inquiry aims to test dividend planetary house surmise in an Indonesian capital market. Signaling surmise states that dividend policy has training content that can run to allocate price. Examination of theory of augury is link to query phenomena in other countries indicating that by percentage at that place is abjection of fellowship which is pay dividend and there even exist mentioning this as phenomenon of disappearing dividend. Examination of theory of signaling is alike related to the research result showing the existence or inexistence of the influence of dividend policy to appoint price. Besides, in this research is withal conducted by examination of office staff theory. This research of agency theory tests the influence of: (1) Free Cash emanate to share price, (2) twist of Ownership to share price, and (3) Structure of self-command t o dividend policy. This research also tests life wheel around theory, seen influence of cycle of confederacy life to dividend policy. Companies which enter in growth manakin break away not to pay a lot of dividend, compared to company at matured step. This research employ quantitative attack by using method of path analysis.

This research use samples in the form of company allocating dividend for period 1995-2005 which listed on PT capital of Indonesia Stock Exchange. Final samples which are utilized in this research are equal to 1052 year observation. This research also tests esthesia, widened sentence of ev en from 1 day at especial(prenominal) stand! ard, becoming 5 and 10 day. Besides test of sensitivity is also conducted changed get along of market model become misbegotten adjusted model in determining expected return. enquiry finding indicates that signaling theory still relevant in influencing movement of share price. Besides, research finding also supports agency theory told by Jensen in seeing influence of emancipate cash descend to share price. For the influence of structure of...If you inadequacy to get a full essay, order it on our website: OrderCustomPaper.com

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