PENGARUH CASH FLOW, UKURAN PERUSAHAAN, DAN KINERJA KEUANGAN TERHADAP KEBIJAKAN DIVIDEN DI BURSA EFEK INDONESIA

Abstract

This research was conducted to determine the effect of free cash flow, profitability, liquidity, company size and leverage on dividend policy (Dividend Payout Ratio). This type of research is causal research and uses quantitative data obtained by purposive sampling method, based on established criteria so that 15 companies can be obtained according to the criteria. The data analysis technique used is a multiple linear regression. The object in this study is a company listed in the Infrastructure, Utilities, and Transportation sector in the Indonesia Stock Exchange for the period 2014 - 2017. The data used is obtained from financial reports, annual reports, and a summary of the performance of listed companies. The research analysis method uses a multiple linear regression with the help of IBM SPSS version 23 software. The results of the study found that free cash flow did not effect on dividend policy because the availability of cash was not a major factor in the consideration of dividend distribution. Liquidity does not affect dividend policy because companies focus more on fulfilling their short-term obligations compared to distributing dividends. Leverage does not affect dividend policy because companies are more concerned with the obligation to pay their debt. Profitability harms on dividend policy because it tends to hold company profits as retained earnings. Company size hurts dividend policy because the allocation of net income tends to be used for investment rather than being distributed in the form of dividends.

Keywords: company size; dividend policy; leverage; liquidity; profitability