Abstract: The study aimed at finding out: (1) the effect of tax rate and dividend policy on the stock price, (2) the effect of tax rate on the stock price, (3) the effect of dividend policy on the stock price, and (4) the effect of tax rate on the dividend policy. (A case study at PT. Telekomunikasi Indonesia, Tbk. during the period of 2001-2014). This study utilized a causal quantitative design involving fourteen (14) samples, such as an annual financial report of PT. Telekomunikasi Indonesia, Tbk during the period of 2001-2014. The samples were selected by using a purposive sampling technique. The data were analyzed by using path analysis in order to measure the extent of the contribution or the effect of independent variables on the dependent variable, both direct and indirect contribution, in relation to the other independent variables. The data were obtained from the secondary source, that is, the website of www.telkom.co.id.
The results indicated that (1) the tax rate and dividend policy had an effect on the stock price for about 76,8%, (2) the tax rate had a positive effect on the stock price for about 32,6%, (3) the dividend policy had a positive effect on the stock price for about 17,5%, and (4) the tax rate had a positive effect on the dividend policy for about 31,3%.
Keywords: tax rate, dividend policy, and stock price.
Title: Influence of Tax Rate and Dividend Policy on Stock Price
Author: Dadang Prasetyo Jatmiko
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
