EVALUATION OF DETERMINANTS OF DIVIDEND PAYOUT RATIO CASE STUDY: LQ45 COMPANIES STOCKS (2014-2018)

• Main Author: Albar Parlindungan, Donny
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53049
• Institution: Institut Teknologi Bandung

The purpose of this research is to determine the relationship of Liquidity, Leverage, Firm Size, Growth Opportunity, and Profitability toward Dividend Policy. The proxies used are Current Ratio (CR) for Liquidity, Debt to Equity Ratio (DER) for Leverage, Natural Logarithm on Total Sales for Firm Size, Tobin’s Q for Growth, Return on Assets (ROA) for Profitability and Dividend Payout Ratio (DPR) for the Dividend Policy of the company. This research uses a purposive sampling method with criteria consist of companies that consistently listed on LQ-45 index period of 2014-2018, non-financial institution companies, and companies that publicly exposed the financial report from the period of 2014 to 2018 and have all the data required for this research. Based on aforementioned criteria, there are 25 companies taken as samples. The analytical techniques processed using E-Views statistic software for the regression test. Prior to that, the author performed of selection of regression panel data model, classical assumption test, descriptive statistics analysis, regression equation, partial test (statistical test of t), and model group test (statistical test of f). The result indicates that only Growth Opportunity and Return on Assets (ROA) that have significant relationship on Dividend Payout Ratio. The recommendation provided for the investors during the process of stocks selection, where the investors should consider Growth and Profitability (ROA) of the targeted companies in order to meet the expectation to get the investment return in a form of dividends. For the management, during the preparation of dividend policy should consider to balance the interests of shareholders and creditor by setting the proper portion of company profit to be used for settling liabilities or dividends payout.