Open AccessProfitability, Liquidity, Leverage and Firm Size on Dividend Policy
Author(s) -
Benyadi Farah Chintya,
Andrianantenaina Hajanirina
Publication year - 2020
Publication title -
perspektif akuntansi
Language(s) - English
Resource type - Journals
eISSN - 2623-0194
pISSN - 2623-0186
DOI - 10.24246/persi.v3i2.p155-166
Subject(s) - profitability index , dividend policy , leverage (statistics) , market liquidity , stock exchange , business , dividend , monetary economics , financial economics , economics , finance , machine learning , computer science
This research aims to test whether dividend policy is affected by profitability, liquidity, leverage and firm size. Previous studies findings still need to be reconciled as they are not conclusive (as for Ahmad and Wardani (2014), Kaźmierska-Jóźwiak (2015) and Pinem and Dwi (2016)). This study uses logistic regression to analyse manufacturing companies, listed on Indonesia Stock Exchange. The result of this study showed that profitability and firm size has significantly associated with dividend policy, while liquidity and leverage has not significantly associated with dividend policy. It could help investors to consider firm asset tangibility and its effectiveness to earn profit while deciding to invest in a manufacturing company.