PENGARUH KINERJA KEUANGAN DAN KEPEMILIKAN INSTITUSIONAL TERHADAP KEBIJAKAN DIVIDEN

Abstract

This research aimed to examine the effect of profitability, liquidity and institutional ownership on dividend policy. While, the variables were referred to Return on Equity (ROE), Cash Ratio (CR) and Dividend Payout Ratio (DPR). The research was quantitative. Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there 40 samples from 8 food and beverages companies which were listed on Indonesia Stock Exchange during 2015-2019. Furthemore, the data analysis technique used multiple linear regression. The research result concluded that profitability had a positive effect on dividend policy. This showed that the higher the profitability was, the higher the companies dividend would be. Consequently, it gave positive information to investors. On the other hand, liquidity did not affect dividend policy. It showed that companies liquidity, i.e. cash ratio did not affect dividend policy. Likewise institutional ownership did not affect dividend policy. This meant, the percentage of institutional ownership within companies did not affect dividend policy. In conclusion, dividend policy was affected by other factors outside those two variables.
Keywords: profitability, liquidity, institutional ownership, dividend policy