The Impact of Earnings Per Share, Dividend Payout Ratio, BI Rate, and Inflation on Stock Price Volatility
Abstract
This research aims to provide empirical evidence on the influence of Earnings Per Share (EPS), Dividend Payout Ratio, BI Rate, and Inflation on Stock Price Volatility. The study focuses on companies listed in the Kompas 100 Index on the Indonesian Stock Exchange (IDX) during the 2018-2022 period. A total of 120 observations were obtained from 24 companies selected using the purposive sampling method, with a five-year observation period. The data analysis technique employed in this research is multiple linear regression analysis. The results indicate that Earnings Per Share and Inflation negatively affect stock price volatility, while the BI Rate has a positive effect. The Dividend Payout Ratio, however, shows no significant impact on stock price volatility. These findings support the validity of signaling theory in explaining the effects of EPS, the BI Rate, and Inflation on stock price volatility.
Keywords: Earnings Per Share; Dividend Payout Ratio; BI Rate; Inflation; Stock Price Volatility
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References
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Nguyen, D.T., Bui, M.H., & Do, D.H. (2019). The Relationship Of Dividend Policy and Share Price Volatility: A Case in Vietnam. Annals of Economics & Finance, 20(1).
Pertiwi, PT, & Wiagustini, NL (2020). The impact of dividend payout ratio (DPR), leverage and firm size on stock price volatility in manufacturing companies listed on the Indonesia Stock Exchange. American Journal of Humanities and Social Sciences Research, 4(3), 399–405.
Raheja, S., & Dhiman, B. (2019). Relationship between behavioral biases and investment decisions: The mediating role of risk tolerance. DLSU Business and Economics Review, 29(1), 31–39.
Santioso, L., & Angesti, Y.G. (2019). Factors Affecting Manufacturing Company Stock Price Volatility. Journal of Economics, 24(1), 46–64.
Sari, RY, & Pangestuti, IRD (2021). Dividend Policy and Share Price Volatility (Case Study of a Manufacturing Company in Indonesia). Diponegoro Journal of Management, 10(2).
Shalehah, S. (2020). The Effect of Inflation, Trading Volume, and Dividend Payout Ratio on Stock Price Volatility in Companies Listed in the LQ45 Index (Doctoral dissertation, Universitas Putra Bangsa).
Sirait, J., Purwohedi, U., & Noviarini, D. (2021). The Influence of Profit Volatility, Financial Leverage, Dividend Policy, and Price to Book Value on Stock Price Volatility. Journal of Accounting, Taxation and Auditing, 2(2), 397–415.
Supeni, N., & Mustofa, M. (2020). Analysis Of The Effect Of Inflation, BI Rate On Stock Price Volatility Through Currency Exchange As Intervening Variable In Consumer Goods Industry In IDX. Agribest Journal, 4(1), 62–69.
Suriadi, IT, & Widjaja, I. (2019). The Influence of Earning Per Share, Debt To Equity Ratio, Price Earning Ratio, Return On Equity On Share Prices Of Food And Beverage Companies In Bei For The 2015-2017 Period. Journal of Business Management and Entrepreneurship, 3(2).
Utami, AR, & Purwohandoko, P. (2021). The Influence of Dividend Policy, Leverage, Earning Volatility, and Trading Volume on Share Price Volatility in Finance Sector Companies Listed on the IDX in 2014-2018. Journal of Management Science, 9(1), 68–81.
Wati, N., & Puspitaningtyas, A. (2023). The Influence of Stock Trading Volume, Inflation Rate and Exchange Rate on Share Price Volatility in the Coal Sub Sector listed on the Indonesian Stock Exchange. Krisnadwipayana Business Management Journal, 11(2), 881–890.
Ajao, M. G., & Robinson, F. E. (2022). Dividend Policy Determinants and Stock Price Volatility in Selected African Stock Markets. International Journal of Finance Research, 3(1), 27–48.
Anachedo, CK, Egbunike, FCP, Nnojie, IA, & Jeff-Anyeneh, ES (2021). Accounting Information and Stock Prices: Empirical Evidence from Quoted Manufacturing Firms in Nigeria. International Journal of Progressive Sciences and Technologies, 28(2), 230–244.
Araoye, F.E., Aruwaji, AM, & Ajya, E.O. (2019). Effect of dividend policy on stock price volatility in Nigeria Stock Exchange. International Journal of Accounting and Financial Reporting, 9(2), 219–231.
Artati, D., & Wahyuni, SL (2023). The Influence Of Dividend, Leverage And Earning Volatility Policies On Stock Price Volatility In Companies Listed In The Lq45 Index. Journal Of Struggle Economics, 5(1), 23–39.
Artikanaya, IKR, & Gayatri, G. (2020). The Influence of Asset Growth, Leverage, and Dividend Payout Ratio on Stock Price Volatility. Accounting E-Journal, 30(5), 1270.
Bulutoding, L., Parmitasari, RDA, & Maharani, ND (2020). The Connexion Of Financial Ratio And Islamic Social Reporting (Isr) On Earning Response Coefficient With Firm Size As A Moderating. International Journal of Research Science and Management, 7(5), 1–16.
Danila, N. (2023). Revisiting Financial Volatility in the Indonesian Islamic Stock Market: GARCH–MIDAS Approach. Journal of Indonesian Economy and Business, 38(2), 166–177.
Della Sadrina, M., & Lestari, HS (2022). The Effect of Dividend Policy Measurement on Stock Price Volatility in the Manufacturing Sector in Indonesia. International Journal of Education, Information Technology, and Others, 5(4), 53–64.
Endri, E., Abidin, Z., Simanjuntak, TP, & Nurhayati, I. (2020). Indonesian stock market volatility: GARCH model. Montenegrin Journal of Economics, 16(2), 7–17.
Estuti, EP, & Hendrayanti, S. (2020). Impact of Stock Trading Volume, Profitability and Dividends on Stock Price Volatility. Proceedings of the National Seminar & Call for Paper STIE AAS, 3(1), 128–136.
Faustine, IS, & Ananda, CF (2022). The Influence of Inflation, Exchange Rates, Trading Volume, and Order Imbalance on Stock Price Volatility in Health Sector Companies Listed in BEI in 2021. Contemporary Studies in Economic, Finance and Banking, 1(3), 408–422.
Ginting, EP (2021). The Influence of Trading Volume and Macroeconomics on Stock Price Volatility (Study of Pharmaceutical Sector Companies Listed on the Indonesian Stock Exchange for the 2016-2020 Period). FEB Student Scientific Journal, 9(2).
Hermanto, A., & Ibrahim, IDK (2020). Analysis of the Effect of Return on Equity (ROE), Earning per Share (EPS), Debt to Equity Ratio (DER) and Dividend Payout Ratio (DPR) on Share Prices in Manufacturing Companies Listed on the Indonesian Stock Exchange for the 2018 Period. Target: Journal of Business Management , 2(2), 179–194.
Hidayati, N., & Sukmaningrum, PS (2021). Factors that influence share price volatility in issuers listed on the Jakarta Islamic Index. Journal of Theoretical and Applied Sharia Economics, 8(6), 706–713.
Hossin, M.S., & Ahmed, M.F. (2020). Dividend policy and stock price volatility in the Bangladesh capital market: An experimental analysis. Saudi Journal of Economics and Finance, 4(7), 359–367.
Juliani, M. (2021). Analysis of Factors That Influence Share Price Volatility in Non-Financial Companies on the Indonesian Stock Exchange. Global Financial Accounting Journal, 5(2), 37–49.
Kengatharan, L., & Ford, J. S. D. (2021). Dividend policy and share price volatility: Evidence from listed non-financial firms in Sri Lanka. International Journal of Business and Society, 22(1), 227–239.
Kengere, P., Kimani, M., & Manyaga, C. (2023). Interest Rate and Volatility of Share Prices of Firms Listed at the Nairobi Securities Exchange, Kenya. International Journal of Finance and Accounting, 8(3), 22–32.
Kohar, A., Ahmar, N., & Suratno, S. (2019). Sensitivity of macro and micro economic factors in predicting stock price volatility of companies in the food & beverages industry sector. JIAFE (Scientific Journal of Accounting, Faculty of Economics), 4(1), 85–100.
Lashgari, Z., & Ahmadi, M. (2014). The impact of dividend policy on stock price volatility in the Tehran stock exchange. Arabian Journal of Business and Management Review (Kuwait Chapter), 3(10), 273–283.
Marini, NLPS, & Sutrisna Dewi, SK (2019). The Influence Of Dividend Policy, Leverage, And Company Size On Stock Price Volatility. Udayana University Management E-Journal, 8(10), 5887. https://doi.org/10.24843/EJMUNUD.2019.v08.i10.p01
Nazir, N. (2022). The Influence of Leverage, Dividend Policy and Company Size on Share Price Volatility. Trisakti Economic Journal, 2(2), 833–844.
N. Gregory Mankiw. (2018). Introduction to Macroeconomics (DA Halim, Ed.; 7th ed.). Salemba Four.
Nguyen, D.T., Bui, M.H., & Do, D.H. (2019). The Relationship Of Dividend Policy and Share Price Volatility: A Case in Vietnam. Annals of Economics & Finance, 20(1).
Pertiwi, PT, & Wiagustini, NL (2020). The impact of dividend payout ratio (DPR), leverage and firm size on stock price volatility in manufacturing companies listed on the Indonesia Stock Exchange. American Journal of Humanities and Social Sciences Research, 4(3), 399–405.
Raheja, S., & Dhiman, B. (2019). Relationship between behavioral biases and investment decisions: The mediating role of risk tolerance. DLSU Business and Economics Review, 29(1), 31–39.
Santioso, L., & Angesti, Y.G. (2019). Factors Affecting Manufacturing Company Stock Price Volatility. Journal of Economics, 24(1), 46–64.
Sari, RY, & Pangestuti, IRD (2021). Dividend Policy and Share Price Volatility (Case Study of a Manufacturing Company in Indonesia). Diponegoro Journal of Management, 10(2).
Shalehah, S. (2020). The Effect of Inflation, Trading Volume, and Dividend Payout Ratio on Stock Price Volatility in Companies Listed in the LQ45 Index (Doctoral dissertation, Universitas Putra Bangsa).
Sirait, J., Purwohedi, U., & Noviarini, D. (2021). The Influence of Profit Volatility, Financial Leverage, Dividend Policy, and Price to Book Value on Stock Price Volatility. Journal of Accounting, Taxation and Auditing, 2(2), 397–415.
Supeni, N., & Mustofa, M. (2020). Analysis Of The Effect Of Inflation, BI Rate On Stock Price Volatility Through Currency Exchange As Intervening Variable In Consumer Goods Industry In IDX. Agribest Journal, 4(1), 62–69.
Suriadi, IT, & Widjaja, I. (2019). The Influence of Earning Per Share, Debt To Equity Ratio, Price Earning Ratio, Return On Equity On Share Prices Of Food And Beverage Companies In Bei For The 2015-2017 Period. Journal of Business Management and Entrepreneurship, 3(2).
Utami, AR, & Purwohandoko, P. (2021). The Influence of Dividend Policy, Leverage, Earning Volatility, and Trading Volume on Share Price Volatility in Finance Sector Companies Listed on the IDX in 2014-2018. Journal of Management Science, 9(1), 68–81.
Wati, N., & Puspitaningtyas, A. (2023). The Influence of Stock Trading Volume, Inflation Rate and Exchange Rate on Share Price Volatility in the Coal Sub Sector listed on the Indonesian Stock Exchange. Krisnadwipayana Business Management Journal, 11(2), 881–890.
Published
2025-01-13
How to Cite
JANNATI, Ayu Sufi; HASIBUAN, Henny Triyana.
The Impact of Earnings Per Share, Dividend Payout Ratio, BI Rate, and Inflation on Stock Price Volatility.
E-Jurnal Akuntansi, [S.l.], v. 35, n. 2, jan. 2025.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/114614>. Date accessed: 09 mar. 2025.
doi: https://doi.org/10.24843/EJA.2025.v35.i02.p05.
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