The Relationship between Dividend Policy and Earnings Quality: The Role of Accounting Information in Indonesia’s Capital Market

Abstract

This study provides empirical proof that the positive impact of high accrual quality is the ability to accurately predict the future return with a positive sign. In the capital market, better prospects are commonly indicated by regularly and routinely implementing a high-yield dividend policy. This study uses dividend policy as a moderated multiple regression, which plays a critical role in achieving a high obedience to accounting standards. The causal research involved 154 of the companies listed on the Indonesia Capital Market and 384 observations in the industrial manufacturing sector for 2015–2020. By mulling over the effect of the COVID-19 pandemic in 2020, and predicting the future market using zero growth with no assumed growth in the future, this empirical study shows that dividend policy is critical when minimizing opportunity behavior. This research provides a mapping of the decision tree model as an implication of game theory because of the interactive feedback between the earning quality and future market value. A sign such as “good” news significantly stimulates the perception of optimistic investors, with no negative manipulation and accruals. It paves the way for investors to strictly control and monitor strategic decisions to obtain significant improvement in prospects.

The Application of Interactive Effect Evaluation Model in the Teaching of College Mathematics Courses

“…Exploration is a deep understanding of things [15]. It is necessary to ask possible questions based on observation results and combine observation results with existing knowledge to seek solutions to problems [16]. Hua Luogeng once said: "scientific discoveries can only be given to those who are literate in learning, and those who are good at independent thinking [17]."…”

Pengaruh Accounting Comparability, Environmental Responsibility, Cash Ratio Dan Dividend Yield Terhadap Earnings Persistence

“…Berdasarkan teori agency dan teori sinyal, manajemen perusahaan berusaha mengirimkan sinyal positif terkait operasional perusahaan melalui pembagian dividend bahwa manajemen optimis perusahaan akan berkembang dan memiliki pertumbuhan laba di periode mendatang. Penelitian terdahulu menyatakan keterkaitan dividend dan laba berkualitas cenderung memiliki hubungan positif dan signifikan dengan kualitas laba (Mulchandani et al, 2020), (Nugroho, 2019), (Siladjaja et al, 2022). Obyek penelitian ini adalah perusahaan yang terdaftar di bursa efek Indonesia dan termasuk ke dalam penggolongan perusahaan high-profile.…”