IMPACT OF ROA AND DIVIDEND POLICY CHANGES ON CHANGES IN LQ45 STOCK PRICES

Abstract

This study analyzes the effect of changes in Return on Assets (ROA) and changes in Dividend Payout Ratio (DPR) on stock price changes of LQ45 companies during the 2013–2023 period. The study employs a quantitative approach using panel data regression and purposive sampling, with 15 companies as the sample yielding 165 observations. The results indicate that changes in ROA and changes in DPR each have a positive and significant effect on stock price changes. In addition, changes in ROA and changes in DPR simultaneously play an important role in influencing stock price movements. This study provides empirical evidence on the role of financial performance and dividend policy as important signals for investors in the Indonesian capital market.