Evaluation of Financial Performance and Its Impact on Stock Prices and Dividend Payout Ratio

Abstract

This research aims to evaluate the financial performance of companies in the property and real estate sector in Indonesia and its impact on stock prices and dividend payout ratios. The analysis was conducted on data from 14 companies listed on the Indonesia Stock Exchange over the period 2019-2023. The method used is regression analysis with SEM-PLS (Structural Equation Modeling-Partial Least Squares). The results show that Return on Assets (ROA) has a positive and significant relationship with Price to Book Value (PBV), indicating that an increase in ROA tends to increase PBV. Conversely, Debt to Equity Ratio (DER) and Earnings Per Share (EPS) do not have a significant relationship with PBV. ROA also has a significant negative relationship with Dividend Payout Ratio (DPR), indicating that an increase in ROA tends to decrease DPR. DER and EPS do not have a significant relationship with DPR. The study concludes that financial performance, particularly asset management efficiency measured by ROA, plays an important role in determining a company's market value. However, DER and EPS do not significantly affect the company's value or dividend policy during the study period.