Company Performance as Predictor in Maximizing Return with Dividend Policy as Moderating Variable in LQ-45 Company

Abstract

The purpose of this study is to empirically analyze the effect of the company’s financial performance such as Economic Value Added and Market Value Added with dividend policy as moderating variable—on return stock of the 45 companies certified as LQ-45. Purposive sampling technique was used in terms of collecting samples; the number of samples in this research is 12 companies during the period 2009-2013. The research data is secondary data obtained from the Indonesian Stock Exchange and ICMD. The hypothesis testing study used moderated multiple regression analysis, with application software Eviews. Result shows that: (1) EVA does not significantly affect return stock. (2) MVA significantly affects return stock. (3) DPR significantly affects return stock. (4) EVA moderated by DPR does not significantly affect return stock. (5) MVA moderated by DPR does not significantly affect return stock. (6) EVA and MVA both moderated by DPR simultaneously affect return stock.