Factors influencing policy dividends in manufacturing companies that listed on Indonesia stock exchange
Keywords:
Current Ratio, Debt to Equity Ratio, Dividend Payout Ratio, Return On Equity, SizeAbstract
This research aims to investigate how dividend policy, as measured by the Dividend Payout Ratio, is influenced by firm Size, Liquidity, Profitability, Liquidity measured by the Current Ratio, and solvability measured by the Debt to Equity Ratio. This study's sample consists of all manufacturing businesses that will be listed on the Indonesia Stock Exchange between 2017 and 2021. This study used a sample of 22 manufacturing companies. The examination procedure utilized in this study is relapse utilizing board information. The findings demonstrated that both Size and Debt positively and significantly influenced the Dividend Payout Ratio to Equity Ratio. On the other hand, the Dividend Payout Ratio was significantly and negatively impacted by the Current Ratio and Return on Equity.
Downloads
References
Abdullah, H. (2021). Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms.
Al-Malkawi, H. A. N. (2008). Factors Influencing Corporate Dividend Decision: Evidence from Jordanian Panel Data. International journal of business, 13(2).
Anuar, H., & Chin, O. (2016). The development of debt to equity ratio in capital structure model: A case of micro franchising. Procedia Economics and Finance, 35, 274-280. https://doi.org/10.1016/S2212-5671(16)00034-4
Aqel, S. (2016). An empirical investigation of corporate dividend payout policy in an emerging market: Evidence from Palestine Securities Exchange.
Brigham, E. F., & Houston, J. F. (2019). Dasar-Dasar Manajemen Keuangan, Buku 2.
Bunea, O. I., Corbos, R. A., & Popescu, R. I. (2019). Influence of some financial indicators on return on equity ratio in the Romanian energy sector-A competitive approach using a DuPont-based analysis. Energy, 189, 116251. https://doi.org/10.1016/j.energy.2019.116251
Bursa Efek Indonesia. (https://www.idx.co.id). Diakses pada tanggal 19 Juni Pukul 11:25.
Fatemian, F., & Hooshyarzadeh, M. (2016). Role of dividend policy determinants in multinational and domestic companies, evidence from Iran. Problems and Perspectives in Management, 14(3), 332-340.
Gebauer, H., Gustafsson, A., & Witell, L. (2011). Competitive advantage through service differentiation by manufacturing companies. Journal of business research, 64(12), 1270-1280. https://doi.org/10.1016/j.jbusres.2011.01.015
Gugler, K. (2003). Corporate governance, dividend payout policy, and the interrelation between dividends, R&D, and capital investment. Journal of Banking & Finance, 27(7), 1297-1321. https://doi.org/10.1016/S0378-4266(02)00258-3
Gupta, A., & Banga, C. (2010). The Determinants of Corporate Dividend Policy. Decision (0304-0941), 37(2).
Hakeem, S. A. A., & Bambale, A. J. A. (2016). Mediating Effect of Liquidity on Firm Performance and Dividend Payout of Listed Manufacturing Companies in Nigeria. Journal of Economic Development, Management, IT, Finance & Marketing, 8(1).
Hanafi, M. M., & Halim, A. (2014). Analisis Laporan Keuangan, Edisi tujuh. UPP AMP YKPN, Yogyakarta.
Hartono, J. (2017). Teori portofolio dan analisis investasi edisi kesebelas. Yogyakarta: bpfe.
Hasnawati, S. (2017). Kebijakan Dividen Di Bursa Efek Indonesia pada Perusahaan Kelompok LQ 45. Jurnal Manajemen, 21(1), 132-145.
Hellström, G., & Inagambaev, G. (2012). Determinants of dividend payout ratios: A study of Swedish large and medium caps.
Hery, S. E. (2018). Pengantar Manajemen. Gramedia Widiasarana Indonesia.
Hovakimian, A., Hovakimian, G., & Tehranian, H. (2004). Determinants of target capital structure: The case of dual debt and equity issues. Journal of financial economics, 71(3), 517-540. https://doi.org/10.1016/S0304-405X(03)00181-8
Hung, D. N., Ha, N. V., & Binh, D. T. (2018). Factors influencing the dividend policy of Vietnamese enterprises. Asian Journal of Finance & Accounting, 10(2), 16-29.
Ichsani, S., & Suhardi, A. R. (2015). The effect of return on equity (ROE) and return on investment (ROI) on trading volume. Procedia-Social and Behavioral Sciences, 211, 896-902. https://doi.org/10.1016/j.sbspro.2015.11.118
Issa, A. (2015). The determinants of dividend policy: Evidence from Malaysian firms. Research Journal of Finance and Accounting, 6.
Jabbouri, I. (2016). Determinants of corporate dividend policy in emerging markets: Evidence from MENA stock markets. Research in International Business and Finance, 37, 283-298. https://doi.org/10.1016/j.ribaf.2016.01.018
Kallapur, S. (1994). Dividend payout ratios as determinants of earnings response coefficients: A test of the free cash flow theory. Journal of Accounting and economics, 17(3), 359-375. https://doi.org/10.1016/0165-4101(94)90033-7
Kashif, A. R., Altaf, M., Abbas, U., Saba, K., Farooq, I., dan Jalal, I. (2021). Determinants of dividend policy in the pharmaceutical sectorof Pakistan. Gazi University Journal of Science, 34(3):270-283
Kaźmierska-Jóźwiak, B. (2015). Determinants of dividend policy: evidence from polish listed companies. Procedia economics and finance, 23, 473-477. https://doi.org/10.1016/S2212-5671(15)00490-6
Khan, M. N., Naeem, M. U., Rizwan, M., & Salman, M. (2016). Factors affecting the firm dividend policy: An empirical evidence from textile sector of Pakistan. International Journal of Advanced Scientific Research and Management, 1(5), 144-149.
Kravchenko, M., Pigosso, D. C., & McAloone, T. C. (2019). Towards the ex-ante sustainability screening of circular economy initiatives in manufacturing companies: Consolidation of leading sustainability-related performance indicators. Journal of Cleaner Production, 241, 118318. https://doi.org/10.1016/j.jclepro.2019.118318
Maladjian, C. (2013). Determinants of the dividend policy: an empirical study on the Lebanese listed banks (Doctoral dissertation, Notre Dame University-Louaize).
Marcus, A. J., Brealey, R. A., dan Myers, S. C. (2008). Dasar-dasar Manajemen keuangan perusahaan, Jilid 1.
Mui, Y. T., & Mustapha, M. (2016). Determinants of dividend payout ratio: evidence from Malaysian public listed firms. Journal of Applied Environmental and Biological Sciences, 6(1), 48-54.
Musthafa, H., SE, M. (2017). Manajemen Keuangan. Penerbit Andi.
Nidar, S. R. (2016). Manajemen Keuangan Perusahaan Modern. Bandung: Pustaka Reka Cipta.
Rafique, M. (2012). Factors affecting dividend payout: Evidence from listed non-financial firms of Karachi stock exchange. Business Management Dynamics, 1(11), 76-92.
Rehman, A., & Takumi, H. (2012). Determinants of dividend payout ratio: Evidence from Karachi Stock Exchange (KSE). Journal of Contemporary Issues in Business Research, 1(1), 20-27.
Sanjari, T., dan Zarei, B. (2014). The study factors influencing corporate dividend policy of financial and non-financial firms on companies listed in Tehran Stock Exchange. Research Journal of Finance and Accounting, 5(21), 138-144.
Spence, A. M. (1973). Time and communication in economic and social interaction. The Quarterly Journal of Economics, 87(4), 651-660.
Sugiarto, A. (2011). Analisa pengaruh beta, size perusahaan, DER dan PBV ratio terhadap return saham. Jurnal Dinamika Akuntansi, 3(1).
Sugosha, M. J., & Artini, L. G. S. (2020). The role of profitability in mediating company ownership structure and size of firm value in the pharmaceutical industry on the Indonesia stock exchange. International Research Journal of Management, IT and Social Sciences, 7(1), 104–115. https://doi.org/10.21744/irjmis.v7n1.827
Tabari, N. A. Y., & Shirazi, S. (2014). The relationship between capital structure and dividend policy in listed companies of Tehran stock exchange.
Ullah, K., Bagh, T., & Arif, M. (2019). Factors Affecting Dividend Policy: An Empirical Investigation of Food Sector of Pakistan. Research Journal of Finance and Accounting, 10(5), 2222-1697.
Waswa, C. W., Ndede, F. W., & Jagongo, A. O. (2014). Dividend payout by agricultural firms in Kenya [An empirical analysis of firms listed on the Nairobi security exchange]. International Journal of Business and Social Science, 5(11).
Wolk, et al. (2001). Signaling, Agency Theory. Accounting Policy Choice. Accounting and Business Research. Vol.18 No.69: 47-56
Yarram, S. R. (2015). Corporate governance ratings and the dividend payout decisions of Australian corporate firms. International Journal of Managerial Finance.
Published
How to Cite
Issue
Section
Copyright (c) 2022 International research journal of management, IT and social sciences
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Articles published in the International Research Journal of Management, IT and Social sciences (IRJMIS) are available under Creative Commons Attribution Non-Commercial No Derivatives Licence (CC BY-NC-ND 4.0). Authors retain copyright in their work and grant IRJMIS right of first publication under CC BY-NC-ND 4.0. Users have the right to read, download, copy, distribute, print, search, or link to the full texts of articles in this journal, and to use them for any other lawful purpose.
Articles published in IRJMIS can be copied, communicated and shared in their published form for non-commercial purposes provided full attribution is given to the author and the journal. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
This copyright notice applies to articles published in IRJMIS volumes 7 onwards. Please read about the copyright notices for previous volumes under Journal History.