The Influence of Liquidity, Profitability, and Dividend Payout Ratio to

Stock Price (An Empirical Study in LQ45 Companies Listed on The

Indonesia Stock Exchange)
Abstract
Investor needs some information before making decision in investment. When they
invest their money in the stock, they should analize some factors that influence stock price.
Some of the essential factors are liquidity, profitability, and dividend payout ratio. Liquidity
describes the risk of investment whether company can return the investors money or not,
profitability indicates the ability of the company to generate profit, and dividend payout ratio
shows how much dividend that will be shared to stockholders. The purpose of this research is
to know the influence of liquidity, profitability, and dividend payout ratio to stock price.
Population of this research is LQ45 companies that listed on The Indonesia Stock
Exchange period 2011-2013. The researcher used multiple regression analysis to analyze the
data. The data used in this study is secondary data that come from ICMD (Indonesia Capital
Market Direectory). The author used current ratio, return on equity ratio, and dividend
payout ratio as the indicator for independent variables.
The result showed that liquidity, profitability, and dividend payout ratio influence the
stock price whether partially or simultaneously. The Coefficient of Determination of this
research is 0.44 which means that 44% from the change in dependent variable can be
explained by those three variables.
Key words: Liquidity, Profitability, Dividend Payout Ratio, Stock Price