The Effect of Collaterallizable Assets, Growth in Net Assets, Liquidity, Leverage and Profitability on Dividend Policy (Case Studies on Non-Financial Services Sector Companies Listed on the Indonesia Stock Exchange for the 2016-2019 Period)

Abstract

Dividend policy is one of the most important functions for corporate finance and has influence with various company stakeholders. Dividend policy reflects the quality and reputation of the company, namely the company's ability to manage its business processes to generate profits well or vice versa. In practice, companies experience difficulties in determining and deciding dividend policies, namely the decision to withhold profits to be used as company operational development or to distribute dividends to shareholders to increase investor confidence in the company. The difference in interests that occurs in dividend policy is called agency theory. This study aims to determine the effect of collateralizable assets (COLLAS), growth in net assets, liquidity (CR), leverage (DER), and profitabilitas (ROE) on dividend policy (DPR) in non-financial service companies listed on the Indonesia Stock Exchange in 2016-2019. The data used in this study was obtained from financial report data taken from the official website of the Indonesia Stock Exchange. The population in this study are non-financial service companies listed on the Indonesia Stock Exchange in 2016-2019. The sampling technique used is perposive sampling and obtained 31 firms with a research period of 4 years, thus obtaining 124 sample data. The method of data analysis in this study is panel data regression analysis using software Eviews 11.0. The results showed that simultaneous collateralizable assets (COLLAS), growth in net assets, liquidity (CR), leverage (DER), and profitabilitas (ROE) had a significant effect on dividend policy (DPR). Meanwhile, partially Collateralizable Assets (COLLAS) has a significant effect in a positive direction on dividend policy. Growth In Net Assets has no significant effect in a negative direction on dividend policy. Liquidity (CR) does not have a significant negative effect on dividend policy. Leverage (DER) does not have a significant negative effect on dividend policy. Profitability (ROE) has a significant effect in a positive direction on dividend policy.

The Effect of Debt Policy, Profitability and Liquidity on Dividend Policy

“…The amount of dividends given is proportional to the high level of liquidity. This is in line with the research of Ahmed ( 2015 2018), Mauris & Nora (2019) show that liquidity has no effect on dividend policy. H3:…”

“…Research Pattiruhu & Paais (2020), Wijayanto & Putri (2018) shows that DER has a positive and significant effect on dividend policy. However, Apriliani & Natalylova (2017), Ahmad & Wardani (2014), Mauris & Nora (2019) do not show that the level of debt has an effect on dividend policy. H1: Debt policy has a positive effect on Dividend Policy in companies incorporated in JII70.…”

The Effect of Profitability on Firm Value Moderated by Dividend Policy (Empirical Study of IDX High Dividend Companies 20 Years 2019-2021)

“…Tingginya profitabilitas yang dikombinasikan dengan optimalnya kebijakan dividen dapat mencerminkan masa depan suatu perusahaan yang baik, dengan begitu harga saham serta nilai dari perusahaan akan meningkat (Mery, 2017). Keuntungan yang sangat tinggi akan berdampak pada pembagian dividen yang tinggi juga, hal tersebut tentu akan menarik perhatian investor serta meningkatkan permintaan akan saham sehingga akan mengarahkan pada nilai perusahaan yang lebih baik (Mauris, 2021).…”

Pengaruh Manajemen Risiko Korporasi, Perputaran Persediaan, Profitabilitas, dan Ukuran Perusahaan terhadap Nilai Perusahaan

“…Firm size dapat memperlihatkan apakah entitas tersebut sedang mengalami pertumbuhan atau tidak, dimana firm size yang besar berarti menunjukkan sebuah pertumbuhan karena itu respons positif dari investor diharapkan yang pada gilirannya akan meningkatkan nilai pada perusahaan [15]. Penilaian dimensi perusahaan didasarkan dengan jumlah total aset yang digunakan untuk operasionalnya [16]. Besarnya jumlah aset mengartikan entitas memiliki kapasitas yang lebih maksimal dalam memanfaatkan aset perusahaannya [17].…”