The Effect of Dividend Policy and Investment Cash Flow on Stock Returns with Company Size as a Moderating Variable: A Study of Food & Beverage Manufacturing Companies on the IDX (2021–2023)

Anne Putri; Fakhri Arib Alsabani; Reviola Zahratu Aini; Sonia Ulva; Ahmad Zuhri Siregar

Authors

Anne Putri Institut Teknologi dan Bisnis Haji Agus Salim Bukittinggi
Fakhri Arib Alsabani Institut Teknologi dan Bisnis Haji Agus Salim Bukittinggi
Reviola Zahratu Aini Institut Teknologi dan Bisnis Haji Agus Salim Bukittinggi
Sonia Ulva Institut Teknologi dan Bisnis Haji Agus Salim Bukittinggi
Ahmad Zuhri Siregar Institut Teknologi dan Bisnis Haji Agus Salim Bukittinggi

Keywords:

Company Size, Dividend Policy, Investment Cash flow, Stock Returns

Abstract

This study aims to analyze the effect of dividend policy and investment cash flow on stock returns and to examine whether company size can moderate this relationship. The research subjects were food and beverage manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period. This study used a quantitative approach with a comparative causal method and Partial Least Squares (PLS)-based Structural Equation Modeling (SEM) analysis technique. The results showed that dividend policy had a positive and significant effect on stock returns, while investment cash flow had no significant effect. Company size was shown to strengthen the effect of dividend policy on stock returns, but did not moderate the relationship between investment cash flow and stock returns. These findings imply that companies need to consider dividend strategies and strengthen transparency in investment activities to attract a positive response from investors.

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