EVALUATION OF FINANCIAL PERFORMANCE AND ITS IMPACTON STOCK PRICES AND DIVIDEND PAYOUT RATIO

Abstract

This research aims to evaluate the financial performance of companies in theproperty and real estate sector in Indonesia and its impact on stock prices and dividendpayout ratios. The analysis was conducted on data from 14 companies listed on theIndonesia Stock Exchange over the period 2019-2023. The method used is regressionanalysis with SEM-PLS (Structural Equation Modeling-Partial Least Squares). The resultsshow that Return on Assets (ROA) has a positive and significant relationship with Price toBook Value (PBV), indicating that an increase in ROA tends to increase PBV. Conversely,Debt to Equity Ratio (DER) and Earnings Per Share (EPS) do not have a significantrelationship with PBV. ROA also has a significant negative relationship with DividendPayout Ratio (DPR), indicating that an increase in ROA tends to decrease DPR. DER andEPS do not have a significant relationship with DPR. The study concludes that financialperformance, particularly asset management efficiency measured by ROA, plays animportant role in determining a company's market value. However, DER and EPS do notsignificantly affect the company's value or dividend policy during the study period.