JAAF (Journal of Applied Accounting and Finance)
Vol 6, No 1 (2022): JAAF (Journal of Applied Accounting and Finance)

Dividend policy of the Jakarta Stock Exchange listed manufacturing company and the underlying factors

Farah Chintya Benyadi (Faculty of Business, Accounting Study Program, President University, Indonesia)
Andrianantenaina Hajanirina (Faculty of Business, Accounting Study Program, President University, Indonesia)
Mila Austria Reyes (Faculty of Business, Accounting Study Program, President University, Indonesia)



Article Info

Publish Date
31 Mar 2022

Abstract

The purpose of this study is to analyze whether profitability, liquidity, leverage and firm size affect dividend policy. Dividend provides riskless revenue for shareholders and though according to the theory, dividend, is irrelevant to firm value. Dividend policy is measured by dummy variable, and the underlying factors including profitability which using return on asset to be measured, liquidity that using current ratio, leverage which using total debt to total asset ratio while log natural of total asset is used as measurement of the firm size. Data collection is using purposive sampling with total sample of 61 companies from manufacturing sector companies listed on Indonesia Stock. This study is using binary logistic regression with 299 sample size. The outcome of this study present that dividend policy is significantly associated with profitability and firm size yet have no significantly correlated with liquidity and leverage of the company.

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Journal Info

Abbrev

JAAF

Publisher

Subject

Economics, Econometrics & Finance

Description

JAAF Journal of Applied Accounting and Finance is a biannual double blind peer reviewed journal published in two period, March and September. This professional journal devoted to the development of accounting and financial disciplines both in theory and practice. The policy of the journal is to ...