PENGARUH PROFITABILITAS, FREE CASH FLOW, DAN LIKUIDITAS TERHADAP KEBIJAKAN DIVIDEN PADA PERUSAHAAN MANUFAKTUR

Abstract

Sharing dividend of the shareholders depends on each company policies. This kind of dividend is also affected by profitability, liquidity, firm size, leverage, and managerial ownership. While, this research aimed to find out the effect of profitability, free cash flow, and liquidity on the dividend policy. Moreover, the profitability was referred to return on asset and liquidity was referred to current ratio. The research was quantitative. Furthermore, the population was all manufacturing companies which were listed on Indonesia Stock Exchange. In addition, the data collection technique used purposive sampling. In line with, there were ten manufacturing companies with five years observation (2013-2017). For the data analysis technique, it used multiple linear regression with SPSS 20. Based on the statistical t test, it concluded that profitability had significant effect on the dividend policy. It meant, the higher profitability the more dividend would be given by the company to every shareholders. And the result of free cash flow and liquidity, those variables did not have significant effect on the dividend policy, it meant, the higher free cash flow and liquidity won’t affect the amount of dividend paid to shareholders.

Keywords: profitability, free cash flow, liquidity, dividend policy