Factors of Dividend Payout Ratio and Influence on Company Value (Case Study on LQ 45 Companies in Indonesia Stock Exchange on the 2011-2015)

Erni Alfisah, Kurniaty

Abstract


The purpose of this study was to examine the effect of return on equity on the dividend payout ratio, the effect of the company's growth on the dividend payout ratio, the effect of free cash flow on the dividend payout ratio, the effect of leverage on the dividend payout ratio, and the effect of the dividend payout ratio on firm value. The model used in data analysis is a simple multiple regression model because the measurement of the dependent and independent variables in this study is in the form of numbers with a ratio scale measurement instrument and independent variables used by more than one. The results of this study indicate that the return on equity has a significant effect on the dividend payout ratio, growth has no significant effect on the dividend payout ratio, free cash flow has a significant effect on dividend payout ratio, leverage has no significant effect on the dividend payout ratio, and dividend payout ratio has a significant effect on the value of the company.


Keywords


Return on Equity, Free Cash Flow, Leverage, Dividend Payout, and Value  

Full Text:

PDF

References


(1) Husnan, Suad, Dasar-dasar teori Porthopolio dan Analisa sekuritas, Edisi ketiga, AMP,YKIN.(2001)

(2) Khoirul Hikmah, Analisis Faktor-faktor yang mempengaruhi Kebijakan DevidenPendekatan Teori Stakeholder Yogyakarta. (2010)

(3) Abdelsalam, Omneya, Ahmed El-Masry and Sabri Elsegini. Board composition, 0wnership structure and dividend policies in an emerging market: Futher evidence from CASE 50. Man. Finance, 34 (12), (2008). 953-964.

(4) Chen, Donghua, Ming Jian, Ming Xu. Dividend for tunneling in regulated economy:The Case of China. Pasific-Basin FinanceJournal, Vol.17, (2009): pp209-223.

(5) Grullon, Gustavo, Roni Michaely, Shlomo Benartzi and Richard H. Thaler. Dividend Changes Do Not Signal Changes in Future Profitability. Journal of Business, 78(5), (2005): pp. 1659-1682.

(6) DeAngelo, Harry, Linda DeAngelo and Rene’ M. Stulz. Devidend Policy and the Earned/Contributed Capital Mix: A Test of the Life-Cycle Theory. Jounal of Financial Economics, Vol 81, (2006): pp 227-254

(7) Truong, Thanh and Richard Heaney. Largest shareholder and dividend policy around the world. The Quarterly Review of Economics and Finance, Vol. 47, pp. 667-687. (2007).

(8) Fenn, George W. And Nellie Liang. 2001. Corporate Payout Policy and Managerial Stock Incentives. Journal of Financial Economics. Vol. 60, pp, 45-72.

(9) Manos, Ronny. Capital Structure and Dividend Policy: Evidence From Emerging Markets. Dissertation. Departement of Accounting and Finance, The Business School, University of Birmingham.(2001)

(10) Gong, Jaisik. Three Essays in Dividend Policy. Dissertation. Louisiana State University and Agricultural and Mechanical College. (1992).

(11) Holmen, Martin, John D. Knopf and Stefan Peterson. Inside Shareholders Effective Tax R Husnan, Suad 2001, Dasar-dasar teori Porthopolio dan Analisa sekuritas, Edisi ketiga, AMP,YKIN.(2008)

(12) Renneboog, Luc and Grzegorz Trojanowski. Control Structures and Payout Policy. Managerial Finance, 33(1),(2007): pp. 43-64.

(13) Huston, Jeffrey L, Determinants of Dividend Policies Among Regulated Utilities. Dissertation Graduate Faculty of the School of Business and Technology Management.(2008)

(14) Kouki, Mondher. Stock Options and Firm Dividend Policy: Evidence From Toronto Stock Exchange, International Research Journal of Finance and Economics, Issue 25, (2009): pp. 97-113.




DOI: https://doi.org/10.24203/ajbm.v6i6.5609

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Asian Journal of Business and Management

Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.