Citation:

Erlan Erlangga, Augustina Kurniasih. "The Moderating Role of Firm Size on the Effect of Dividend Policy, Cost of Capital, and Dividend Growth on Stock Prices of Telecommunications Companies: An Empirical Study in Indonesia" International Research Journal of Economics and Management Studies, Vol. 4, No. 10, pp. 23-30, 2025. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V4I10P104

Abstract:

This study aims to analyze the effect of dividend policy, cost of capital, and dividend growth on the stock prices of companies operating in the telecommunications sub-sector listed on the Indonesia Stock Exchange, moderated by firm size. In 2022, there were 18 companies in the telecommunications sub-sector, of which 6 met the sampling criteria. Using the Moderated Regression Analysis (MRA) approach, the results show that dividend policy and dividend growth have no significant effect on stock prices. The cost of capital has a big negative effect on the prices of stocks. The size of a company can change how dividend policy, cost of capital, and dividend growth affect the stock prices of communications businesses listed on the Indonesia Stock Exchange.

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Keywords:

Dividend Policy, Cost Of Capital, Dividend Growth, Firm Size, Stock Prices, Telecommunications Sub-Sector.