PENGARUH PROFITABILITAS, FREE CASH FLOW, DAN SOLVABILITAS TERHADAP DIVIDEND PAYOUT RATIO TERHADAP DIVIDEND PAYOUT RATIO

Abstract

This research aimed to examine the effect of profitability, Free Cash Flow, and solvability on the Dividend Payout Ratio (DPR). The profitability was measured by Return On Assets, Free Cash Flow was measured by cash flow operation, and solvability was measured by Debt to Equity Ratio. The research was quantitative. The population was Food and Beverage companies listed on the Indonesia Stock Exchange (IDX). Moreover, the data collection technique used purposive sampling, in which the sample was based on the criteria given. In line with that, there were 10 Food and Beverage companies as the sample. Furthermore, the data were taken for 5 years (2017-2021). In total, there were 50 data samples. The data analysis technique used multiple linear regression with SPSS 25. The result concluded that Return On Asset had a negative effect on Dividend Payout Ratio. However, both the Free Cash Flow and Debt to Equity Ratio had a positive and significant effect on Dividend Payout Ratio.