Analysis Determinant of Dividend Payout Ratio and Its Impact to the Firm Value (Empirical Study on Food and Beverage Industry Issuer 2016-2019)

Abstract

The purpose of this research is to Analyze Determinant of Dividend Payout Ratio and Its Impact to The Firm Value (Empirical Study on Food And Beverage Industry Issuer 2016-2019). The samples in the form of secondary data as many as 16 companies collected from financial statements listed on the Indonesia Stock Exchange (IDX). In this study, nine research hypotheses were formulated. The analysis design used is quantitative data with panel data regression method which is processed with Eviews 9 with a random effect model. Hypothesis testing using F test, T test, and Sobel test (Path Analysis). The results showed that partially direct financial performance as proxied by the current ratio, debt equity ratio and return on assets had a positive effect on firm value, and partially current ratio, debt equity ratio and return on assets had a positive effect on dividend payout ratio. Simultaneously, the current ratio, debt equity ratio and return on assets have a positive effect on firm value. Indirectly, the dividend payout ratio is able to strengthen the relationship between the current ratio, debt equity ratio and return on assets to firm value.

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“…DPC of a particular company refers to a composite score based on its performance subject to the factors influencing the dividend payout. To derive the criteria/factors that influence the dividend payment we follow the extant literature in the stated field and consider the aspects like ownership pattern [91] , [92] , size of the organization [93] , profitability [94] , [95] , growth prospect [96] , liquidity [97] , [98] and risk [95] .…”

“…The value is calculated as Where, is the market return at time t and and are the intercept and slope respectively. Using the ordinary least square method, the beta value is calculated as Min Value Aspect 2: Dividend payout capability C21 Institutional Ownership (IO) % ownership by Non-promoters Maximize % [91] , [92] C22 Size of the Firm (S) Natural Log of total assets Maximize Value [93] C23 Net Profit Margin (NPM) (Net Profit/Revenue)*100% Maximize % [94] , [95] C24 Return on Capital Employed (ROCE) (PBIT/Capital Employed)*100% Maximize % [97] , [98] C25 Sales Growth (SG) Natural Log of (Sales at t/Sales at (t 1)) Maximize Value [96] C26 …”

“…Using the ordinary least square method, the beta value is calculated as Min Value Aspect 2: Dividend payout capability C21 Institutional Ownership (IO) % ownership by Non-promoters Maximize % [91] , [92] C22 Size of the Firm (S) Natural Log of total assets Maximize Value [93] C23 Net Profit Margin (NPM) (Net Profit/Revenue)*100% Maximize % [94] , [95] C24 Return on Capital Employed (ROCE) (PBIT/Capital Employed)*100% Maximize % [97] , [98] C25 Sales Growth (SG) Natural Log of (Sales at t/Sales at (t 1)) Maximize Value [96] C26 Market Cap/Enterprise Value (MCEV) Market capitalization/Enterprise Value Maximize Times [97] , [98] C27 Net Cash Flow (from operating activities) (NCF) Net amount of money being generated from regular business...…”