PENGARUH PROFITABILITAS, LEVERAGE, INVESTMENT OPPURTUNITY SET DAN FIRM SIZE TERHADAP KEBIJAKAN DIVIDEN

Abstract

A dividend is a return investors expect for their stock investment in the company. Furthermore, a dividend policy is a policy related to dividend payment, including a decision on the number of shared dividends and retained earnings for the company’s needs. The kinds of dividends namely, cash dividend, property dividend, liquidity dividend, stock dividend, and debt dividend. This research aimed to examine, empirically, the effect of profitability, leverage, investment opportunity set, and firm size on dividend policy. Moreover, the sample was manufacturing companies during 2018-2020. The data collection technique used purposive sampling with 46 samples. Additionally, the data analysis technique used multiple linear regression with SPSS 25. The research result concluded profitability affected dividend policy. This meant a higher growth company would consider its asset expense. However, leverage did not affect dividend policy, which meant the company’s debt was considered to have a low risk. In contrast, the investment opportunity set affected the dividend policy. It meant, that as the company was in good condition, the management tended to choose new investments rather than pay higher dividends. Meanwhile, firm size did not affect dividend policy, which meant an established company was not always having easier access to the capital market.