PENGARUH KINERJA KEUANGAN DAN KEBIJAKAN DIVIDEN TERHADAP PERTUMBUHAN LABA PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

This research aimed to examine the effect of financial performance and dividend policy on the profit growth. Financial performance and dividend policy as the independent variable and profit growth as the dependent variable. Furthermore, the financial performance was measured by liquidity ratio, activity ratio, and solvency ratio meanwhile the dividend policy was measured by Dividend Payout Ratio (DPR). This research type was quantitative. Furthermore, the research sample used purposive sampling i.e., a sample selection with determining criteria. Based on the purposive sampling method it obtained 60 data from 12 manufacturing companies engaged in the consumption sector which was listed on The Indonesia Stock Exchange during the 2016 2020 periods. Moreover, the research analysis method used multiple linear regression analysis with the SPSS program 26 version. The research result indicated that total activity ratio of assets turnover (TATO) had a significantly positive effect on profit growth. The Liquidity ratio of current Ratio did not have any significant and positive effect on the profit growth. The Solvency ratio of debt to equity ratio did not have any significant and positive effect on the profit growth.