The Influence of Return on Investment, Current Ratio, Debt to Equity Ratio , Earning Per Share,and Firm Size to the Dividend Pay Out Ratio in Banking Industries Listed at Indonesia Stock Exchange Period 2013-2018

Abstract

This study aimed to examine the factors that influence the ratio of dividend payments in the banking industry. These factors include return on investment, current ratio, debt to equity ratio, earnings per share, and firm size. The technique for sampling using purposive sampling while the sample used in this study was 6 banking companies listed on the Indonesia Stock Exchange in 2014-2018. The analytical method used in this study was a panel data regression model (a combination of time series and cross section). From the results of the study, showed that first, the return on investment did not significantly affect the dividend payout ratio; second, the current ratio did not significantly influence the dividend payout ratio; third, the debt to capital ratio had a significant effect on dividend payout ratios; fourth, earnings per share did not significantly influence to the ratio of dividend payout ratios and the last was that the size of the company had a significant effect on the ratio of dividend payout ratios. From these results it is expected that can be used as a reference, both by company management and by investors in determining investment strategies.

Bank Characteristics and Dividend Payout of Selected Commercial Banks in Kenya

“…The study findings also contradict findings by Nyere and Wesson (2019) in South Africa who found a positive significant effect for industrial companies and Ogundajo et al (2019) in Nigeria who found a negative significant effect for manufacturing firms. In Asia, the findings contradict the findings by Brahmaiah et al (2018) in India and Rahmadi (2020) for banks listed at the Indonesia Stock Exchange.…”

“…Prior findings have recorded significant correlation between various firm characteristics and dividend payout. For instance, Kiangi et al (2022), Nyere and Wesson (2019), Ogundajo, Enyi, Akintoye, and Dada (2019), Brahmaiah, Srinivasan, and Sangeetha (2018) and Rahmadi (2020) found a significant correlation between dividend payout and firm size whereas Pattiruhu and Paais (2020), Katakwar, Tenguriya, Chhajer, and Mehta (2021) and Okoro, Ezeabasili, and Alajekwu (2018) Considering foregoing studies together with several others published in other emerging and developing countries, this study wanted to establish by providing empirical evidence of effects of bank characteristics on dividend payout for large commercial banks. The study was directed by the ensuing null hypotheses: H01: Bank size has no significant effect on dividend payout of Tier I banks in Kenya.…”

“…(2019,Nyere and Wesson (2019),Abiahu, Udeh and Ogbekhilu (2018) andBrahmaiah et al (2018) observed significant correlation between liquidity and dividend payout while Pattiruhu and Paais (2020),Okoro et al (2018) andKatakwar et al (2021) found an insignificant relationship liquidity and dividend payout. Moreover, study byPattiruhu and Paais (2020),Okoro et al (2018),Rahmadi (2020) andAbiahu et al (2018) found zero significant correlation between dividend payout and profitability whileNyere and Wesson (2019),Kiangi et al (2022),Brahmaiah et al (2018) and Ogundajo et al (2019) observed significant correlation.…”

Rasio Profitabilitas, Likuiditas, Leverage dan Dividend Payout Ratio

“…Kebijakan pembayaran dividen harus didukung dengan ketersediaan aset lancar (kas) yang cukup guna pembayaran dividen tersebut. Pada penelitian Nehe et al, (2021), likuiditas memiliki pengaruh negatif dan pada beberapa penelitian lainnya justru memberikan pengaruh (Arsyad et al, 2021;Fadillah & Eforis, 2020;Herawati & Fauzia, 2018;Jackson & Laksmiwati, 2021;Kengatharan, 2021;Lie & Osesoga, 2020;Martha & Juliani, 2018;Rahmadi, 2020;Tahir & Mushtaq, 2016) Aspek lain pendorong kebijakan pembayaran dividen yakni rasio leverage. Tidak mudah bagi entitas dengan leverage yang tinggi untuk memutuskan apakah akan mendistribusikan dividen atau tidak kepada pemilik.…”

Pengaruh Roa, Asset Growth, Dan Firm Size Terhadap DPR Dengan Der Sebagai Variabel Intervening

“…Adanya pengaruh yang tidak signifikan, dikarenakan sebagian sampel penelitian ini merupakan perusahaan dengan kategori besar namun membagikan dividen tidak lebih tinggi daripada perusahaan dengan size yang relatif kecil. Penelitian ini diperkuat hasil penelitian (Simbolon & Sampurno, 2017), (Suliana & Susanti, 2017) (Simbolon & Sampurno, 2017), (Indrawan, 2017), (Sari & RM, 2017), (Cahyani & Badjra, 2017), (Zaman, 2018), (Anwar, 2018), (Fitriati et al, 2018), (Anshar & Warimin, 2020), dan (Tania Rahmadi, 2020). Variabel DER mampu memediasi pengaruh ROA terhadap DPR, akan tetapi variabel DER tidak mampu memediasi pengaruh asset growth dan firm size terhadap DPR.…”