Title:
THE EFFECT OF PROFITABILITY, LEVERAGE AND LIQUIDITY ON STOCK RETURN WITH DIVIDEND POLICY AS A MEDIATION VARIABLE IN MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

Authors:
Elga Dian Sefti, Indonesia

Abstract:

This study aims to examine the effect of profitability, leverage and liquidity on stock returns by using dividend policy as a mediating variable. The sample of this research is companies engaged in the manufacturing sector which are listed on the IDX in the 2015-2019 period. Analysis of research data using linear regression equation model and mediation test with Sobel Test. The research findings prove that profitability has a significant positive effect on stock returns. On the other hand, leverage and liquidity have no significant effect on stock returns. Meanwhile, dividend policy is not able to mediate the effect of profitability, leverage and liquidity on stock returns. This proves that investors need to consider the company's profitability when investing.