The Effect of Return on Assets, Debt-to-Equity Ratio, Firm Size, and Sales Growth on The Dividend Payout Ratio in Manufacturing Companies Listed on The Indonesian Stock Exchange from 2014 to 2018
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Debt-to-Equity Ratio,
Firm Size,
Sales Growth,
Dividend Payout Ratio
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Abstract
This study aims to analyze the effects of Return on Assets (ROA), Debt-to-Equity Ratio (DER), Firm Size, and Sales Growth on the Dividend Payout Ratio (DPR) among manufacturing companies listed on the Indonesia Stock Exchange during the 2014–2018 period. This study employs a quantitative method with an explanatory approach. The study population consisted of 144 manufacturing companies, while the sample was determined using purposive sampling based on predetermined criteria. The data used consisted of the companies’ financial statements during the observation period and were analyzed using multiple linear regression with the aid of SPSS version 21.00. The results indicate that ROA has a positive and significant effect on DPR, DER has no significant effect on DPR, Firm Size has a positive and significant effect on DPR, while Sales Growth has a negative and significant effect on DPR. Simultaneously, ROA, DER, Firm Size, and Sales Growth have a significant effect on DPR. The Adjusted R-Square value of 34.3% indicates that the independent variables in this study explain 34.3% of the variation in the dividend payout ratio (DPR), while 65.7% is explained by other factors outside the research model. This study is expected to serve as a basis for management in determining dividend policies and for investors in making investment decisions.
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