<![CDATA[The problem that will be addressed in this study is whether the cash flow of operating activity affects significantly the dividend payout in relation to the firm’s life cycle. Considering the research problem and hypothesis, the study use a simple linear regression analysis method. The result of analysis shows that there is significant effect of operating activity cash flow on the dividend payout in the growth and mature stages, while in the start-up and decline stages, the operating activity cash flow does not affect significantly the dividend payout. From those evidences, it can be concluded that each stage of life cycle contains different financial report information (financial characteristic) value. Based on these findings, the recommendation for future research are using a wide-range sample and include other firm-specific factors such as asset base, earnings, and cash flow of investment activity or funding that may have the more effect on the dividend in each life cycle of firm, and should also consider the other categorization methods of life cycle.]]>
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