PENGARUH PROFITABILITAS, LIKUIDITAS DAN KEPEMILIKAN INSTITUSIONAL TERHADAP KEBIJAKAN DIVIDEN PADA PERUSAHAAN FOOD AND BEVERAGE

Abstract

This research aimed to examine the effect of profitability, liquidity, and institutional ownership on the dividend policy. Profitability was proxy with Return On Equity (ROE), liquidity was proxy with CAsh Ratio (CR), and institutional ownership was proxy with Dividend payout ratio (DPR). The research population used food and beverages companies during the 2016- 2020 period. This research used the purposive sampling method i.e., a sample collection from a population with determining criteria by the researcher. Based on the determined criteria it obtained 40 samples from 8 companies. There was extreme value data so it is necessary to do outliers and transform it into SQRT form so that the data becomes 35. Moreover, the data analysis technique used multiple linear regressions. The research analysis result showed that profitability had an insignificant effect on the dividend policy because there was a factor in a low profitability level. Meanwhile, the institutional ownership had a significant effect on the dividend policy because the Cash ratio showed that the company was able to pay the dividend to the investors there it should be prepared a lot of cash so that it would not decrease the company’s liquidity level. Meanwhile, the institutional ownership had a significant effect on the dividend policy because institutional ownership was the biggest stakeholder in the company compared among the other ownership therefore it was able to control and supervise the manager’s performance as well as able to increase the company’s profit.
Keywords: profitability, liquidity, institutional ownership