Does firm size can moderate the effect of dividend pay-out ratio and leverage on stock volatility?

Abstract

This study aims to obtain empirical evidence regarding the effect of dividend pay-out ratio and leverage on stock volatility with firm size as a moderating variable. The theory used in this research is signal theory. This study takes a population of manufacturing companies listed on the IDX in 2017-2021. By using purposive sampling method in accordance with the specified criteria, researchers obtained 27 sample companies with 135 observations. The data analysis technique used is Moderated Regression Analysis (MRA). The research results obtained are the dividend pay-out ratio has a negative effect on stock volatility, leverage has no effect on stock volatility, firm size strengthens the negative relationship dividend pay-out ratio on stock volatility, firm size does not moderate the positive relationship of leverage on stock volatility.