Abstract:
This research aims at analyzing the influence of firm’s specific financial ratio consist
of price book value, price earning ratio, debt to equity ratio, and return on asset
toward stock price with dividend policy as mediating variable. This empirical
research was conducted focus on the company listed in IDX which characterized as
LQ45 index during the period of 2010–2017 to get 64 samples. The panel data has
proceeded through the classical assumption test, multiple regression, and path
analysis approached by employing Eviews 9.0. The result carried by the multiple
regression found that PER and DER have a positive significant influence, as well as
PBV and ROE has positive insignificant influence toward DPR. In addition, path
analysis test indicates that DPR only can mediate the influence of PER and DER
toward stock price.
