PENGARUH PROFITABILITAS DAN LIKUIDITAS TERHADAP KEBIJAKAN DIVIDEN PADA INDEKS LQ45 PERIODE 2017-2020

Abstract

Dividend policy is a decision which is used by a company in order to decide how much of the company’s part which will be given to stakeholders and re-invested or kept in the company. Moreover, the dividend can be repaid in the form of cash, stock, or other assets. All dividends have to be published by the board of directors before the dividends become the company’s obligation. The research aimed to examine empirically the effect of profitability and liquidity on dividend policy. The population was LQ-45 companies which were listed on Indonesia Stock Exchange (IDX) during 2017–2020. Furthermore, the data collection technique used purposive sampling. In line with that, there were 76 data from 19 LQ-45 companies as the sample. However, there were 49 outliers. Additionally, the data analysis technique used multiple linear regression with SPSS 26. The research result concluded that profitability had a positive effect on dividend policy, since companies which get some profits tend to pay its portion bigger as dividend. In contrast, liquidity had a negative effect on dividend policy as companies which get high liquidity used some funds to improve their short-term obligation. Therefore, it would reduce the competence in paying the dividend.