The Effect of Dividend Payout Ratio, Leverage and Assets Growth on Stock Price Volatility (Empirical Study on LQ45 Company on the Indonesia Stock Exchange 2016-2019)

ABSTRACT : The stock price on the LQ45 index is influenced by a variety of factors that will fluctuate andcan change at any time. The statistical measure of the fluctuation in stock prices during a certain period is calledthe volatility of the stock price. With the volatility, investors have the potential to gain in stock transactions.However, high volatility can also increase the risk for investors. Stock price volatility is caused by newinformation that can change investors’ opinions and decisions. Information that can affect stock price volatilitycan be in the form of dividend payout ratio, leverage and asset growth. The purpose of this study is to obtainempirical evidence regarding the effect of the dividend payout ratio, leverage, and asset growth on share pricevolatility. This research was conducted on companies that are included in the LQ45 index on the IndonesiaStock Exchange during the 2016-2019 period. The sample was determined by using purposive samplingtechnique. The samples obtained were 19 companies. The data collection method uses the documentationmethod. This study uses data analysis techniques with multiple linear regression analysis. The results of dataanalysis in this study indicate that the dividend payout ratio and asset growth have a negative effect on stockprice volatility, while leverage has a positive effect on stock price volatility.

Keywords: dividend payout ratio, leverage, asset growth, share price volatility, and LQ45