Factors Affecting Dividend Policy on Non-Financial Companies in Indonesia
Journal Title: GATR Accounting and Finance Review - Year 2017, Vol 2, Issue 3
Abstract
Objective – The objective of this study is to obtain empirical evidence and analyse the factors that affect the dividend policy of non-financial firms listed on the Indonesian Stock Exchange. The factors studied include liquidity, leverage, growth, price/earnings, size, earnings per share, price to book ratio, ownership, age of the firm, floating rate, profitability, and free cash flow. Methodology/Technique – The sampling method used in this study is purposive sampling, in which the samples are taken based on suitable characteristics of the population to generate representative samples. The total number of samples in this study are 105 non-financial firms listed on the Indonesian Stock Exchange between 2011 and 2015. The hypothesis is tested by using multiple regression analysis. Findings – The results of this study show that earnings per share, price to book ratio, and floating rate affect the dividends policy while liquidity, leverage, growth, price/earnings, size, ownership, age of the firm, profitability, and free cash flow has no effect on dividend policy. Novelty – The study findings contribute the companies to establish an appropriate dividend policy to satisfy the interest of both parties that is companies future growth and its investors. Type of Paper: Empirical
Authors and Affiliations
Novia Wijaya, Agathon Felix
Keywords
Related Articles
- EP ID EP197733
- DOI -
- Views 169
- Downloads 0
Factors Affecting Dividend Policy on Non-Financial Companies in Indonesia
Objective – The objective of this study is to obtain empirical evidence and analyse the factors that affect the dividend policy of non-financial firms listed on the Indonesian Stock Exchange. The factors studied include...
Whistle Blowing in The Police Sector: The Importance of Control Behaviour Factor and Professional Commitment
Objective - This study aimed to examine the effect of perceived behaviour control and professional commitment to the interest of doing whistleblowing. This research was conducted at the police department in Riau province...
Impact of Tri Hita Karana Culture on the Use of Accounting Information Systems and User Satisfaction as the Expression of Information System Success
Objective – The research aims to examine whether Tri Hita Karana (THK) culture influences the use of Acccounting Information System (AIS) and user satisfaction as the expression of Information Systems (IS) success. Metho...
Frame Value of Strategic Management Accounting Based on The Balance of Tri Kaya Parisudha
Objective - Hinduism presupposes all life activities. This includes Strategic Management Accounting (SMA) which could maintain life's equilibrium by practising the goal of life suggested by the Tri Kaya Parisudha (TKP)....
The Impact of Bankruptcy Prediction, Company's Financial Condition, Previous Year Audit Opinion, Firm Size and Audit Tenure Towards Auditor's Going Concern Opinion
Objective - The auditor is responsible for obtaining sufficient audit evidence about the accuracy and proper use of the going concern assumption from the company's management through its financial statements. These evide...