Abstract :
Many research about price reaction in association with dividend announcement were conducted with the conclusion that dividend have an impact
on price reaction. Dividend policy determines the division of earnings between
payments to stockholders and reinvestment in the firm. The objective of this study
is to analyze the influence of dividend per share to stock price on common bank
listed in Indonesia Stock Exchange. This study examine 6 companies listed in
Indonesia Stock Exchange and issues dividend payment which can be seen from
the resolutions of the annual general meeting of shareholders each years during
period 2003-2007. The statistical method used to test the hypothesis is simple
linear regression. The result of this study revealed that there is influence between
dividend per share on stock price.
Keywords: dividend policy, dividend per share, and stock price.