The Effect of Profitability, Solvency, and Liquidity on Stock Price with Dividend Policy as a Moderating Variable in the Conventional Commercial Banking Subsector for the 2020–2024 Period

Abstract

This study aims to analyze the effect of profitability, solvency, and liquidity on stock prices and to examine dividend policy as a moderating variable in conventional banking sub-sector companies listed on the Indonesia Stock Exchange during 2020–2024. The study uses a quantitative approach and secondary data from financial reports and market data. The sample consists of 14 conventional commercial banks with 70 panel observations selected through purposive sampling. The data were analyzed using panel data regression and Moderated Regression Analysis with EViews 13. The Random Effect Model was selected as the best estimation model. The results show that profitability, measured by Return on Asset, significantly affects stock prices, while Capital Adequacy Ratio and Loan to Deposit Ratio do not significantly affect stock prices. Simultaneously, the three variables significantly affect stock prices, with the model explaining 13.1% of the variation based on R-squared. Dividend policy, measured by Dividend Payout Ratio, does not moderate the relationship between profitability, solvency, or liquidity and stock prices.