Open AccessRelevance Of Devidend Policy As The Mediation On The Relationship Between Financial Performance and Debt On Share Prices
Author(s) -
Irma Tyasari,
Supami Wahyu Setiyowati
Publication year - 2021
Publication title -
jbmp: jurnal bisnis, manajemen dan perbankan/jbmp (jurnal bisnis, manajemen dan perbankan)
Language(s) - English
Resource type - Journals
eISSN - 2528-4649
pISSN - 2338-4409
DOI - 10.21070/jbmp.v7i1.1334
Subject(s) - dividend policy , share price , debt , dividend , business , mediation , monetary economics , stock price , finance , financial system , financial economics , economics , stock exchange , paleontology , series (stratigraphy) , political science , law , biology
The investors place great importance on the share price of publicly traded companies since it may reflect the company’s value. The research objective is to examine the relationship between financial performance and debt at share prices through dividend policy. The method of the research used is quantitative and correlational research. The data analysis technique is the use of smart PLS. The results of the study explain that financial performance has a positive effect on stock prices in the mediation of dividend policy. Debt negatively affects share price mediated by dividend policy. The implication of the study is that companies should consider the benefits as well as risks of borrowing funds from third parties. Investors and potential investors before investing their money in stocks must pay attention to financial performance, corporate debt and dividend policy so that they do not experience losses in their investment.