IMPACT OF FINANCIAL RATIOS ON DIVIDEND POLICY (EMPIRICAL STUDY OF MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2005-2009)

Dwi Purwanti

Abstract


Keywords: Financial ratios (EPS, DER, PBV, ROI, and TATO), Dividend
ABSTRACT
Dividends are important for companies because it is associated with an appropriate allocation of income of the company's growth and prosperity so that shareholders can be assured. Determination of dividends is affected by two groups of factors: financial and non-financial factors. This study focuses on the discussion of financial factors, as measured by financial ratios because it can provide a picture of corporate performance.
This study aims to analyze the effect on financial ratios, dividend payout ratio. This study uses five independent variables (Earning Per Share, Debt To Equity Ratio, Price Book Value, Return On Investment, and Total Asset Turn Over). Sampling method used was purposive random sampling. Analysis tool used is multiple linear regression and hypothesis testing using t test and f. Sample who is 14 companies listed in Indonesia Stock Exchange during the five year period 2005 to 2009. The results showed that the Debt To Equity Ratio (DER), Return On Investment (ROI) and Total Asset Turn Over (tattoo) effect on cash dividends in the companies listed in Indonesia Stock Exchange, while Earning Per Share (EPS) and Price Book Value (PBV) has no effect on Cash Dividend. While jointly (simultaneously), the fifth variable is Earnings Per Share, Debt to Equity Ratio, Price Book Value, Return On Investment, Total Assets Cash Turn Over
striving affect dividend. It allows no variables that have a dominant influence on the House of Representatives. This is because the global economic crisis.

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