The Influence of Profitability, Dividend Policy and Institutional Ownership on Banking Stock Prices Listed on the Indonesian Stock Exchange

Abstract

This research aims to analyze the influence of profitability, dividend policy and institutional ownership on Stock Prices both simultaneously and partially. The sample used in this research was 41 banks listed on the Indonesia Stock Exchange (BEI) during the period 2020 to 2022, resulting in a total of 123 observation data. The analytical method used is multiple regression analysis. The results of the analysis show that simultaneously, profitability, dividend policy and institutional ownership have a significant influence on Stock Prices. However, partially, profitability does not have a significant influence on Stock Prices. On the other hand, dividend policy was found to have a positive and significant influence on Stock Prices, indicating that a consistent and profitable dividend policy can increase investor interest and Stock Prices. Institutional ownership also has a significant effect on Stock Prices, indicating that ownership by financial institutions can give the market more confidence regarding the company's prospects. This research provides a better understanding of the factors that influence Stock Prices in the banking sector in Indonesia and can be a reference for investors in making better investment decisions.