PENGARUH PROFITABILITAS, LIKUIDITAS DAN FREE CASH FLOW TERHADAP KEBIJAKAN DIVIDEN

Abstract

This research aimed to examine the effect of profitability, liquidity, and free cash flow on the dividend policy. Furthermore, the researchers used a purposive sampling method and obtained 54 samples from manufacturing companies in the food and beverages sector listed on Indonesia Stock Exchange in the 2015-2020 periods. The analysis method of this research used multiple linear regression. The research result showed that profitability positively affected the dividend policy at food and beverage companies listed on IDX 2015-2020. This result was in accordance with the first hypothesis, which meant that if the profitability was high, the dividend policy would be high as well. Liquidity showed a positively affected dividend policy at food and beverages companies listed on IDX 2015-2020. The research result from the second hypothesis. If the liquidity increased, the company’s dividend also increased. Free cash flow did not affect the dividend policy at food and beverage companies listed on Indonesia Stock Exchange 2015-2020. The research result showed it was not following the third hypothesis.