Profitability, dividend policy, and capital structure as determinants of stock price in IDX30 firms (2022–2024)

Rizqiya Adha Riani () and Hadi Suriono ()
Additional contact information
Rizqiya Adha Riani: Universitas Asahan
Hadi Suriono: Universitas Asahan

Priviet Social Sciences Journal, 2026, vol. 6, issue 5, 425-442

Abstract: This study examines the partial and joint association between three fundamental financial signals — corporate profitability, dividend policy, and capital structure — and the stock price of blue-chip firms in the IDX30 index of the Indonesia Stock Exchange (IDX) during the post-pandemic period of 2022–2024. Drawing on signaling theory, trade-off theory, pecking-order theory, and the life-cycle theory of dividends, the study integrates three valuation-relevant signals — Return on Assets (ROA), Dividend Payout Ratio (DPR), and Debt-to-Equity Ratio (DER) — into a single explanatory framework that has rarely been examined within the IDX30 cohort. Using purposive sampling, a balanced short panel of 14 firms over three years (n = 42 firm-years, reduced to n = 38 after diagnostic outlier removal) was constructed from audited annual reports published through the official IDX website. The study employs pooled multiple-regression as the baseline specification while acknowledging the panel structure of the data; the limitations of pooled estimation for short panels and the implications for inference are discussed transparently in the methodology, and sector-stratified robustness is presented. Accounting predictors for year t are matched against the year-end closing price of year t, following common practice in prior Indonesian capital-market research; potential look-ahead implications are explicitly noted. The model is subjected to classical assumption tests (Kolmogorov-Smirnov for normality, VIF for multicollinearity, Glejser-style test for heteroscedasticity, and Durbin-Watson for autocorrelation). Results indicate that ROA is positively and significantly associated with stock price (β = 0.745, t = 13.35, p

Keywords: stock price; profitability; dividend policy; capital structure; IDX30; signaling theory (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.privietlab.org/download.php?id=12981 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prv:pssjpv:1923

Ordering information: This journal article can be ordered from
https://journal.priv ... SJ/article/view/1923

DOI: 10.55942/pssj.v6i5.1923

Access Statistics for this article

More articles in Priviet Social Sciences Journal from Privietlab Research Center
Bibliographic data for series maintained by Mochammad Fahlevi ().