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THE INFLUENCE OF INVESTMENT OPPORTUNITY SET, DEBT POLICY, AND DIVIDEND POLICY TO THE STOCK PRICE (AT MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE)

PRADIPTA PURI, ARLYNSA (2011) THE INFLUENCE OF INVESTMENT OPPORTUNITY SET, DEBT POLICY, AND DIVIDEND POLICY TO THE STOCK PRICE (AT MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE). Other thesis, Universitas Lampung.

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    Abstract

    The research purposes to empirically test the the influence of investment opportunity set, debt policy, and dividend policy to the stock price (CAR) and also to obtain empirical evidence about the variance of market responses (CAR), dividend policy, and debt policy at the firm’s growth level (Level IOS) The sample is obtained by purposive judgment sampling from Indonesia Stock Exchange (IDX). Based on the criteria, there are only 50 companies used as the sample. Afterwards, we commit factor analysis to clasify the firm’s growth into grow firm and non grow firm. The factor analysis results 15 grow firms and 15 non grow firms. The hypothesis testing is conducted by using General Linear Model. The result shows that investment opportunity set, debt policy, and dividend policy all together influence the stock price (CAR) and there’s a variance of market responses (CAR), dividend policy, and debt policy at the firm’s growth level (Level IOS). Based on the result, it can be concluded that lower debt to equity ratio in high growth firm and higher dividend policy ratio in high growth firm reflect management optimism for the firm’s future income. Thus, it’s such a good announcement for the investors in order they can response positively on the stock price.

    Item Type: Thesis (Other)
    Subjects: A General Works > AC Collections. Series. Collected works
    Divisions: UNSPECIFIED
    Depositing User: Bayu Wicaksono S.Kom
    Date Deposited: 27 Sep 2013 13:59
    Last Modified: 27 Sep 2013 13:59
    URI: http://repository.unila.ac.id/id/eprint/433

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