Profitability, liquidity, leverage, and corporate dividend policy

Abstract

This study examines the factors influencing dividend policy: profitability, liquidity, and leverage. The dependent variable of dividend policy is measured using the Dividend Payout Ratio (DPR). The return measures the independent variable of profitability on Equity (ROE) proxy. The independent variables of liquidity are measured using the Current Ratio (CR) proxy, and leverage is measured by the Debt-to-Equity Ratio (DER) proxy. The sampling method was purposive, and data were analyzed using multiple linear regression. The sample was manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. The number of observational data used in the test totaled 221 observations. This research shows that profitability positively affects the dividend payout ratio, and other variables, namely liquidity, and leverage, do not affect dividend policy. The research results are expected to add to the research literature on the factors influencing dividend policy

Rasio Profitabilitas, Likuiditas, Leverage dan Dividend Payout Ratio

“…Hasil riset menguatkan riset sebelumnya yang dilakukan oleh Fadillah & Eforis (2020), Handayani et al, (2022), Martha & Juliani (2018), dan Putri et al, (2018). Hasil riset tidak mendukung penelitian Kengatharan (2021), Ogundajo et al, (2019), dan Yusuf & Rahmawati (2016) yang menunjukkan bahwa aspek profitabilitas memberikan pengaruh negatif terhadap DPR (dividen Payout Ratio).…”

“…Hasil riset menguatkan riset yang dilakukan oleh Arsyad et al, (2021), Fadillah & Eforis (2020), Handayani et al, (2022), Herawati & Fauzia (2018), Jackson & Laksmiwati (2021), Kengatharan (2021), Lie & Osesoga (2020), Martha & Juliani (2018), Rahmadi (2020), dan Tahir & Mushtaq (2016). Riset ini berbeda dengan hasil riset oleh Manaf et al, (2021) dan Nehe et al, (2021).…”

“…Entitas akan lebih memilih untuk memprioritaskan pembayaran utang maupun bunganya daripada membagikan dividen ke pemilik. Hasil riset menguatkan penelitian Fadillah & Eforis (2020), Handayani et al, (2022), Hung et al, (2018, Jackson & Laksmiwati (2021), Kengatharan (2021), Lie & Osesoga (2020), Martha & Juliani (2018), dan Widyawati & Indriani (2019). Hasil penelitian tidak mendukung riset oleh Marina et al, (2020), Nehe et al, (2021), Ogundajo et al, (2019), dan Tahir & Mushtaq (2016).…”