FINANCIAL POLICY, MARKET RESPONSE, AND FINANCIAL PERFORMANCE AS DETERMINANT OF STOCK RETURN

Abstract

This study is designed to prove the influence of financial policy such as dividend policy proxied by the dividend pay-out ratio (DPR) and debt policy proxied by the debt to equity ratio (DER), market response proxied by the PER, and financial performance proxied by return on equity (ROE) on stocks returns in consumer cyclicals companies listed on the Indonesia Stock Exchange (IDX) during the period 2016 – 2023. The study uses a quantitative approach and using secondary data collected through documentation. The data is processed and analyzed using panel data regression with the assistance of EViews 13 software. The results indicate that DPR dan DER have a positive effect on stocks returns, while PER and ROE do not have effect on stock returns.