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http://dx.doi.org/10.13106/jafeb.2020.vol7.no10.035

Effect of Liquidity, Profitability, Leverage, and Firm Size on Dividend Policy  

PATTIRUHU, Jozef R. (Faculty of Economics, Department of Financial Management, Universitas Pattimura)
PAAIS, Maartje (Faculty of Economics, Department of Management, Universitas Kristen Indonesia Maluku)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.10, 2020 , pp. 35-42 More about this Journal
Abstract
This study aims to investigate the relationship between the variables of Current Ratio (CR), Return-on-Equity (ROE), Return-on-Assets (ROA), Debt-to-Equity Ratio (DER), and Firm Size (FS) on Dividend Policy (DP) in real estate and property companies listed on the Indonesia Stock Exchange in the period 2016-2019, looking at nine real estate companies in Indonesia. The research methodology uses an explanatory analysis approach and linear regression. Based on the eligibility and homogeneity of the data, the number of sample companies selected was nine companies. The company's financial statement data derived from primary data obtained on the Indonesia Stock Exchange, such as current ratio (CR), return-on-equity (ROE), return-on-assets (ROA), debt-to-equity ratio (DER) and firm size and dividend policy variables. The data analysis procedure is first to transform financial data from the original ratio data into interval data and, then, transform it to ordinal data. Furthermore, the validity and reliability process are ignored because the data is primary. Finally, regression testing is part of the hypothesis testing stage. The results of this study showed that the CR, ROE, and firm size had no positive and significant effect on dividend policy. In contrast, DER and ROA have a positive and significant impact on dividend policy.
Keywords
Liquidity; Profitability; Leverage; Firm Size; Dividend Policy;
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Times Cited By KSCI : 10  (Citation Analysis)
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