PENGARUH RASIO KEUANGAN TERHADAP KEBIJAKAN DIVIDEN PADA PERUSAHAAN MANUFAKTUR

Abstract

This research aimed to examine the effect of financial ratio on the dividend policy at Consumption Goods manufacturing companies listed on The Indonesia Stock Exchange during 2017-2021. The financial ratio was measured by profitability (Return On Equity), liquidity (Current Ratio), solvability (Debt to Asset Ratio), and activity (Total Asset Turnover). While the dividend policy was measured by Dividend Payout Ratio. The research was quantitative. Furthermore, the population was Consumption Goods manufacturing companies listed on The Indonesia Stock Exchange during 2017-2021. Moreover, the data collection technique used purposive sampling, in which the sample was based on the criteria given. In line with that, there were 85 samples from 40 Consumption Goods manufacturing companies during 5 years of observation (2017-2021). Additionally, the data analysis technique used SPSS. The research result showed that profitability (Return On Equity) had a positive effect on dividend policy. However, liquidity (Current Ratio) did not affect dividend policy (DPR). In contrast, Solvability (Debt to Asset Ratio) had a negative effect on dividend policy (DPR). On the other hand, activity (Total Asset Turnover) did not affect the dividend policy (DPR).