The Effect of Exchange Rates, Profitability and Solvency on Stock Prices: Mediated Effect of Dividend Policy (Study on Registered Consumer Goods Companies on the Indonesian Stock Exchange)

The share price of consumer goods companies listed on the Indonesia Stock Exchange fluctuated, which caused investors to experience difficulties investing in the capital market. A dividend policy is a policy in making decisions to distribute profits as dividends or withhold profits for business development; This is difficult for many company managers to do. This study aims to test and prove empirically the effect of exchange rates, interest rates, profitability, and solvency on stock prices mediated by dividend policy. This study uses a quantitative approach with a sample of consumer goods companies listed on the Indonesia Stock Exchange. The number of observations is 14 companies, with a research period of 5 years (2016-2020). Sampling using a purposive sampling method. Analysis of research data using multiple linear regression methods and path analysis. The study results show that solvency does not significantly affect stock prices directly or through dividend policy. In contrast, profitability significantly affects stock prices directly and through dividend policy. The results of the same test also show that the exchange rate measured using exchange rate sensitivity has a significant effect on the share price of consumer goods companie