ANALYSIS OF LIQUIDITY, LEVERAGE, ACTIVITY RATIOS, PROFITABILITY AGAINST STOCK RETURNS WITH DIVIDEND POLICY AS A MODERATION VARIABLE (EMPIRICAL STUDY ON MANUFACTURING COMPANIES REGISTERED IN BEI PERIOD 2014-2017)

Abstract

Financial statements are very important for investors in making investment decisions. Financial ratios are useful for predicting a company's financial difficulties, operating results, current and future financial conditions, as well as guidelines for investors regarding past and future performance. This study aims to examine and analyze the ability of dividend policy variables in moderating the influence of variable liquidity, leverage, profitability and activity on stock returns. In this study the sampling method used purposive sampling. The sample of this study is a manufacturing company listed on the Indonesia Stock Exchange in the 20142017 period. The results showed that the variables of liquidity, leverage, and activity had no effect on stock returns, while the profitability variable had an effect on stock returns. Dividend policy is able to moderate the relationship of profitability to stock returns, while for the relationship of liquidity, leverage, and activity on stock returns cannot be moderated by dividend policy.