Determinants of Dividend Policy on Development Board Index: Manufacturing Sector in Indonesia Stock Exchange (IDX)

Abstract

This study aims to investigate the determinant factors that affect dividend policy in Development Board Index (DBX), with the manufacturing sector listed in Indonesia stock exchange (IDX) and the period 2018-2021. There are independent variables such as ROA, debt, sales growth and firm age and dividend policy as dependent variables. The study population are manufacturing companies which are listed on the development board index. This study examines 8 companies with a total of 32 data samples. The panel data regression with random effect model was used to analyze data. The results of this study are ROA, and sales growth has an impact on dividend policy. ROA has a positive impact, and sales growth has a negative impact on dividend policy. Meanwhile, debt and age have no significant impact on the dividend policy. Keywords: Development Board Index, Dividend Policy, Profitability, Debt, Sales Growth

The Impact of Financial Management Practices on Firm Performance: A Study of the Manufacturing Sector in Indonesia

“…To study the impact of financial management practices on firm performance in the manufacturing sector in Indonesia, a systematic research methodology would be employed. The study would begin by selecting an appropriate research design that aligns with the research objectives (Resti Aulia Safitri et al, 2023). This could involve choosing between quantitative, qualitative, or mixed-method approaches.…”

“…As a rapidly developing country with a large manufacturing base, Indonesia faces unique challenges and opportunities. The manufacturing sector in Indonesia has experienced both successes and setbacks, influenced by various factors such as government policies, market conditions, technological advancements, and global economic trends (Resti Aulia Safitri et al, 2023).…”