Does Dividend Payment Generate a Market Signal to Investors?


  • Farida Farida Universitas Persada Indonesia Y.A.I
  • Nur Wahyuni Universitas Persada Indonesia Y.A.I
  • Venus F Firdaus Universitas Persada Indonesia Y.A.I
  • Mery Wanialisa Universitas Persada Indonesia Y.A.I
  • Rahayu Endang Suryani Universitas Persada Indonesia Y.A.I
  • Nursina Nursina Universitas Persada Indonesia Y.A.I


Dividend Theory, Signaling Theory, Premium Risk, Logistic Regression


In perfect market theory, the information will provide signals that are reflected in stock price movements. In the context of dividend payments, these theories are still debatable. Dividend payments will please shareholders as prosperity increases. But not sharing profits can also give a positive signal. The purpose of this study is to see if dividend payment able to give a positive signal on rising stock prices. The research will also look at whether profitability, leverage, asset growth, and interest rates also signal rising stock prices. Logistic regression analysis is applied to answer the research objectives. Purposive sampling is based on retail companies that specialize in the category of supermarkets and minimarkets that have been listed on the Indonesia Stock Exchange for the period 2013 to 2022. The results of this research conclude that dividend payments give a positive signal on rising stock prices. The chance of a stock price increase is 4.7 times compared to a company that does not pay dividends. Interest rates also inform investors to be careful in making investment decisions. Investors are only willing to bear additional risk if the expected profit is above the risk premium. Information on the company's financial performance such as profitability, leverage, and asset growth is not significant on the increase in stock price. This means that it does not provide signals for investors.


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Farida, F., Siregar, H., Nuryartono, N., & KP, E. I. (2016). Determinant of microcredit repayment. Bulletin of Monetary Economics and Banking, 19(1), 57-80.




How to Cite

Farida, F. ., Wahyuni, N. ., Firdaus, V. F. ., Wanialisa, M. ., Suryani, R. E. ., & Nursina, N. . (2024). Does Dividend Payment Generate a Market Signal to Investors?. Proceeding of the International Conference on Multidisciplinary Research for Sustainable Innovation, 1(1), 295–299. Retrieved from