Effect of Dividends as Moderator on Trading Volume and Stock Prices in the Green Economy

Ade Asriani () and Syamsu Alam
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Ade Asriani: Hasanuddin University
Syamsu Alam: Hasanuddin University

A chapter in Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), 2025, pp 3072-3077 from Springer

Abstract: Abstract This study aims to evaluate the performance of sustainable investments in the green economy sector, focusing on the paradoxical relationship between trading volume and stock prices, with dividends as a moderating variable. Using data from companies in the green economy sector listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023, the study employs a quantitative approach with explanatory research design. The results indicate that trading volume does not have a significant direct effect on stock prices (Sig. = 0.158). However, when dividends are included as a moderating variable, the relationship between trading volume and stock prices becomes significant (Sig. = 0.000). This suggests that while trading volume alone does not influence stock prices, the presence of dividends strengthens the impact of trading volume on stock price movements. Dividends serve as a positive signal to investors, indicating financial stability and promising future prospects, which enhances investor confidence, particularly in the green economy sector, where sustainability is a key factor. These findings contribute to the literature on sustainable finance by providing new insights into how financial policies such as dividends interact with market behavior in sectors focused on environmental sustainability.

Keywords: Trading Volume; Stock Prices; Dividend (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-758-8_254

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