Abstract: This study employs the Auto-Regressive Distributed Lag (ARDL) model to assess the influence of dividend policy, net income, total assets, total equity, EPS, and ROE on firm value and stock prices of public firms in Indonesia. The data used in the study include annual financial statements for 397 firms between 2000 and 2024. The findings suggest that all dependent variables have a positive and significant impact on stock prices in both the long and short run. From the investors' point of view, an efficient dividend policy can signal the firm's shareholder value, while high net income indicates the firm's profitability, which is critical for investment decisions. The significant total assets and total equity suggest a strong operating and financial position, which boosts investor confidence. EPS is the most influential and further affirms the market's eagerness for earnings per share as a critical performance indicator. A high ROE demonstrates increased corporate value resulting from the efficient mobilization of equity funds and the value added in the process. The ARDL model, with an average forecast error of 1.53%, has proven to be an accurate and effective predictor of stock prices, as well as a valuable resource for corporate financial management. To increase the capital market's business worth and attract investors, the study also highlights the importance of strategically managing finances, along with optimizing the dividend policy. In managing the business, the study offers practical implications for improving financial performance through optimal financial and dividend policies.

Keywords: Financial Management Optimization, Dividend Policy, Net Profit, Total Assets, Total Equity, ARDL

Pages: 2664-2676