The effect of inflation and interest rate on dividend yield in banking companies listed in Indonesia stock exchange
This study is expected to give a better understanding of the impact of inflation and interest rate on dividend yields. The result of this study can be used as a basis to make better investment decisions for investors before investing in capital market products in the Indonesia Stock Exchange, especially banks. This study uses secondary data of 22 banks that are listed in Indonesia Stock Exchange from 2007-2011. Panel data regression is conducted using Stata 12. The finding shows that both inflation and interest rate is not significant towards dividend yields. Thus inflation and interest rate does not affect the dividend yield issuance decision in companies.
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