TITLE:
The Effect of Debt to Equity Ratio and Return on Equity on Stock Return with Dividend Policy as Intervening Variables in Subsectors Property and Real Estate on Bei
AUTHORS:
Dina Nurhikmawaty, Isnurhadi, Marlina Widiyanti
KEYWORDS:
Debt to Equity Ratio, Return on Equity, Stock Returns, Dividend Payout Ratio, Dividend Policy
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.5,
September
4,
2020
ABSTRACT: The aims of this study are to investigate the effect of Debt to Equity Ratio and
Return on Equity on stock returns with dividend policy as an intervening
variable on the property and real estate companies in Indonesia. We collected annual data for eighteen property and real estate
companies in Indonesia from the Indonesia Stock Exchange over the period of
2014-2018. We applied multiple linear regression model using SPSS and the Sobel
test. Our analysis results found that Debt to Equity Ratio (DER), Return on
Equity (ROE), and Dividend Payout Ratio (DPR) have a positive and significant
affect on stock returns, both partially nor jointly. Furthermore, the result of
Sobel test revealed Dividend Payout ratio (DPR) can be mediate the relationship
of Debt to Equity Ratio (DER) and and Return on Equity (ROE) on stock returns. Based on these findings, we concluded that Debt to Equity Ratio
(DER) and Return on Equity (ROE) have direct and indirect effects on Stock
Return in 18 Indonesia’s property and real estate companies.