Determinants Dividen Payout Ratio and Its Impact on Decitions Investment: A cas study on a mining company listed in Indonesia Stock Exchange
DOI:
https://doi.org/10.54099/ijmba.v1i2.280Keywords:
dividen payout ratio, investment, dividen policyAbstract
Purpose – This study aims to analyze the effect of financial performance on investment decisions with dividend policies (DPR) as intervening variables in mining sector companies listed on the Indonesia Stock Exchange for 2017 to 2020. The independent variables used in this study are financial performance. The financial performance used in this study is Return on Asset (ROA), Current Ratio (CR), Debt to Equity Ratio (DER), Free Cash Flow (FCF), and Dividend Policy (DPR), while the dependent variable is investment decision ( IOS). This study aims to analyze the effect of financial performance on investment decisions with dividend policies (DPR) as intervening variables in mining sector companies listed on the Indonesia Stock Exchange for 2017 to 2020. The independent variables used in this study are financial performance. The financial performance used in this study is Return on Asset (ROA), Current Ratio (CR), Debt to Equity Ratio (DER), Free Cash Flow (FCF), and Dividend Policy (DPR), while the dependent variable is investment decision ( IOS).
Methodology/approach – The sample in this study consisted of 13 mining sector companies listed on the Indonesia Stock Exchange (IDX) in the 2017 to 2020 period which was selected based on certain criteria using the purposive sampling method. Analysis of the data used in this study is a multiple Liniear regression analysis (T test and F test) which is processed using Eviews 11.0.
Findings – It was found that . the multiple regression models used in this study, the results of partial testing (T test) showed that only two variables namely ROA, and DER with probability of 0.0006 and the most dominant tstatistics were 3,694806 and inflation rates that had a significant effect on investment decisions. In addition, simultaneously (F test) shows that ROA, CR, DER, FCF, jointly affects investment decisions.
Novelty/value – Since dividend policy affects investment decisions, it is very important to know the factors that influence dividend policy. Keywords Employee Dividen Payout Ratio, Investment, Dividen Policy
References
Gaspersz, Vicent. 2012, All In One: Production And Inventori Management. Edisi 8. Bogor.
Ghozali, Imam dan Irwansyah. 2002. Analisis Pengaruh Kinerja Keuangan Perusahaan dengan Alat Ukur EVA, MVA dan ROA terhadap Return Saham pada Perusahaan Manufaktur di BEJ. Jurnal Penelitian Akuntansi-Bisnis dan Manajemen Vol.9 No. 1.
Hakim, dkk. 2019. Pengaruh Debt To Equity Ratio, Return On Equity, Earning Per Share Dan Dividend Payout Ratio Terhadap Price Earning Ratio (Studi Empiris Pada Perusahaan Manufaktur Sub Sektor Kimia Yang Terdaftar Di Bursa Efek Indonesia Periode 2013-2017).Vol. 8 No. 2 Oktober 2019
Kabajeh, Majed Abdel Majid, Said Mukhled Ahmed AL Nu’aimat, and Firas Naim Dahmash 2011. “The Relationship between the ROA, ROE and ROI Ratios with Jordanian Insurance Public Companies Market Share Prices”. International Journal of Humanities and Social Science. Vol. 2 No. 11; June 2012.
Kieso dan Weygandt. 2011. Intermediate Accounting edisi tahun 2011. Jakarta: Erlangga.
Nizar, A. 2008. Factors Influencing Corporate Dividend Decision: Evidence from Jordanian Panel Data. International Journal of Business, 13(2): pp :177-195.
Paramita, R. A. S. 2015. Free Cash Flow, Leverage, Besaran Dan Siklus Hidup Perusahaan: Bukti Kebijakan Deviden Di Indonesia. Jurnal Riset Ekonomi Dan Manajemen, 15(1), 169–181.
Pongtiku, A., & Salim, M. N. Determinan Roe dan Dampaknya terhadap Harga Saham Perusahaan Manufaktur Sub Sektor Otomotif dan Komponen Terdaftar di Bursa Efek Indonesia. Indikator, 4(3), 353538.
Putri, dkk. 2021. Pengaruh Return on Asset Dan Debt To Equity Ratio Terhadap Devidend Payout Ratio Pada Perusahaan Pertambangan Yang Terdaftar Di Bursa Efek Indonesia Periode 2013-2017.
Riyanto. 2011. Dasar-Dasar Pembelanjaan Perusahaan. Edisi Keempat. Yogyakarta: BPEE
Rodoni, A & Ali, H. 2014. Manajemen Keuangan Moderen. Jakarta: Mitra Wacana Media.
M. Noor Salim., & Wahyuni, E. S. (2019). The Effect Of Internal, External Factors On Corporate Performance And Its Impact On Corporate Values In Indonesia Manufacturing Companies In The Automotive Sub Sector And Its Components In 2008-2017. International Journal of Enginering Technology and Management Research, 6(6), 101-115.
Salim., & Winanto, H. A. (2020). Determinant Return on Assets and Its Impact on Assets Growth (Case Study of Sharia General Banks in Indonesia). Journal of Economics and Business, 3(1).
Sigiyono. 2018. Metode Penelitian Kuantitatif, Kualitatif Da R&D. Bandung: Alfabeta.
Chen, K. Y., Elder, R. J., & Hung, S. (2010). The investment opportunity set and earnings management: Evidence from the role of controlling shareholders. Corporate Governance: An International Review, 18(3), 193-211.
Devi, S. S., & Marimuthu, M. (2011). Investment opportunity set and dividend policy in Malaysia. African Journal of Business Management, 5(24), 10128-10143.
Belghitar, Y., & Khan, J. (2013). Governance mechanisms, investment opportunity set and SMEs cash holdings. Small Business Economics, 40(1), 59-72.
Mun’im, A., & Mauludin, H. (2018). The Influence of Leverage and Liquidity at Profitability with Investment Opportunity Set (IOS) as Intervening Variable–A Case study at manufacturing companies listed in Indonesian Stock Exchange in period 2013-2016. International Journal of Management Excellence, 11(2), 1598-1606.
Jaggi, B., & Gul, F. A. (1999). An analysis of joint effects of investment opportunity set, free cash flows and size on corporate debt policy. Review of quantitative finance and accounting, 12(4), 371-381.
Novyarni, N., & Permana, R. Y. (2020). Effect of Current Ratio, Return on Asset, Net Profit Margin and Debt to Equity Ratio on Dividend Pay Out Ratio.
Parsian, D., & Shams Koloukhi, A. (2014). A study on the effect of free cash flow and profitability current ratio on dividend payout ratio: Evidence from Tehran Stock Exchange. Management Science Letters, 4, 63-70.
Pattiruhu, J. R., & PAAIS, M. (2020). Effect of liquidity, profitability, leverage, and firm size on dividend policy. The Journal of Asian Finance, Economics, and Business, 7(10), 35-42.
Gul, F. A., & Kealey, B. T. (1999). Chaebol, investment opportunity set and corporate debt and dividend policies of Korean companies. Review of Quantitative Finance and Accounting, 13(4), 401-416.
Abor, J., & Bokpin, G. A. (2010). Investment opportunities, corporate finance, and dividend payout policy: Evidence from emerging markets. Studies in economics and finance.
Sejati et al., (2020). Faktor- faktor yang mempengaruhi kebijakan dividen. The journal of Berkala Akuntansi dan keuangan indonesia, 2(20), 110-131.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 International Journal of Management and Business Applied
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
