The Analysis of Dividend Policy towards Company Market Valuein Property and Real Estate Industry Listed on Indonesia Stock Exchange in the Period of 2010 – 2014

Abstract

An analysis of the relationship between dividend policy and the company market
value (stock price) in the Indonesian property and real estate industry listed on the Indonesia
Stock Exchange provides the investors information about the impact of dividend policy on
company market value. To examine the effect of dividend policy to company market value,
author use similar analysis from the previous studies conducted in other countries in property
and real estate industry companies listed on the IDX. To examine the impact of dividend policy
to company market value (stock price), the author use Ohlson’s equity valuation model which
contains 3 models. The first model is based on permanent earning, second model based on
expected future earnings, and third model based on current earning The result shows dividend
policy that was examined based on Ohlson’s equity valuation model has moderate correlation
to company market value (stock price) and only investment positively affecting the market
value (stock price).