ANALYSIS OF DIVIDEND POLICY IN PT. TELEKOMUNIKASI INDONESIA Tbk. USING CASH FLOW APPROACH

• Main Author: Adryana (NIM. 291 05 037), Heru
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/6230
• Institution: Institut Teknologi Bandung

Abstract : <br /> <br /> <br /> <br /> <br /> How does a company distribute its benefit to their shareholders? One means that might be taken is to reinvest fund received from their shareholders (owners fund) into new investments that increase their share values. A fundamentally convincing growth would bring a positive impact to share values outstanding in stock exchange market. A direct increase in share value generates value to the shareholders. Another means is the formulation of companys dividend policy by returning cash to shareholders either through routine dividend payment or through share buyback. <br /> <br /> <br /> <br /> <br /> As a public company, each year PT. Telekomunikasi Indonesia, Tbk. (TELKOM) distributes dividend to their shareholders, with procedure and amount of dividend formalized in the General Meeting of Shareholders (GMS). Through this dividend distribution, TELKOM returns cash benefit to their shareholders. <br /> <br /> <br /> <br /> <br /> In Corporate Finance theory, dividend policy along with other financial policies e.g. investment and financing policies, make up an integrated and inseparable parts. A fundamental objective that would like to be achieved is to increase the company value which in turn would maximize their shareholders prosperity. <br /> <br /> <br /> <br /> <br /> Through the analysis of dividend policy using cash flow approach, it can be analyzed whether the dividend policy regulated by TELKOM exceeds TELKOMs ability to pay and whether the investment projects established generate values to the company. Related to companys capital structure, the analysis would also show the condition of the TELKOMs capital structure at certain point of time. <br /> <br /> <br /> <br /> <br /> The result of dividend policy evaluation will be used as basis for Companys decision making and suggested as an alternative solution for TELKOM related to the Companys financial policy including investment, financing and dividend policy. <br />