The purpose of this study was to determine the effect of the company's fundamental factors which proxied by using the variable Growth (sales Growth), profitability (ROA), Firm Size (Log Natural of Total Assets), and non-fundamentals factor which proxied by using the ownership structure (Institutional Ownership percentage) on stock price by the Dividend Policy as an intervening factor. This study used purposive sampling method and based on predetermined criteria, there are 16 companies which were selected as sample with the period of data collection during the years of 2011-2015.
Hypothesis testing was done by using Path Analysis. Results showed that the independent variable (Growth, ROA, Firm Size and Structure of ownership) has a significant positive effect on the dependent variable Dividend Policy (Dividend Payout Ratio), while for the relationship between the independent variables Growth, ROA, and Ownership structure Share Price indicates that there is no direct influence on stock prices except for using the Dividend Payout Ratio as an intervening variable. |