PENGARUH PROFITABILITAS, FREE CASH FLOW, INVESTMENT OPPORTUNITY SET TERHADAP DIVIDEND PAYOUT RATIO

Abstract

The purpose of this research is to examine profitability, free cash flow and investment opportunity set have
positive and significant influence to the dividend payout ratio on automotive companies which are listed in
Indonesia Stock Exchange.This research is a quantitative research type and the population is all automotive
companies which are listed in Indonesia Stock Exchange during the 4 year periods started from 2011 to 2014.
The sample collection technique has been done by using saturated sample methods, therefore 13 automotive
companies which are listed in Indonesia Stock Exchange during the 4 years periods which start from 2011 to
2014 have been selected as samples. The data analysis technique has been done by using multiple linear
regressions and the hypothesis test has been done by performing SPSS 20 version. Based on the result of model
feasibility test, it shows that the regressions model that has been generated is feasible and it can be used for
further analysis.Based on the result of the hypothesis test, it shows that profitability, free cash flow and
investment opportunity set variables have positive and significant influence to the dividend payout ratio in the
automotive companies which are listed in Indonesia Stock Exchange.
Keywords: profitability, free cash flow, investment opportunity set, dividend payout ratio.