Determinants of dividend payout ratio: evidence from Indonesian manufacturing companies

Dessy Widyawati  -  Universitas Diponegoro, Indonesia
*Astiwi Indriani  -  Universitas Diponegoro, Indonesia
Received: 3 Sep 2019; Published: 30 Dec 2019.
Open Access Copyright 2019 Diponegoro International Journal of Business
License URL: http://creativecommons.org/licenses/by-sa/4.0

Citation Format:
Article Info
Section: Articles
Language: EN
Statistics: 462 335
Abstract
The purpose of this study is to investigate and analyze the relationship between return on assets, growth sales, debt to equity ratio, lagged dividend to dividend payout ratio and size as control variable. Data collected from manufacturing industries in Indonesian Stock Exchange 2011-2017. The method of this study is ordinary least square regression. The results of this study shows that return on assets and lagged dividend have positive impact to dividend payout ratio. Growth sales has insignificance negative relationship to dividend payout ratio. Debt to equity ratio has positive relationship to dividend payout ratio and has insignificance sign
Keywords: dividend payout ratio; return on assets; growth sales; lagged dividend; size

Article Metrics:

  1. Adjaoud, F., & Ben-Amar, W. (2010). Corporate governance and dividend policy: Shareholders’ protection or expropriation? Journal of Business Finance and Accounting, 37(5–6), 648–667. https://doi.org/10.1111/j.1468-5957.2010.02192.x
  2. Adu-Boanyah, E. (2013). Determinants of dividend payout policy of some selected manufacturing firms listed on the Ghana Stock Exchange ., 4(5), 49–61.
  3. Ahmed, H., & Javid, A. Y. (2008). Dynamics and determinants of dividend policy in Pakistan (evidence from Karachi stock exchange non-financial listed firms). Munich Personal RePEc Arcive, I(37342). Retrieved from https://core.ac.uk/download/pdf/12031629.pdf
  4. Amidu, M., & Abor, J. (2006). Determinants of dividend payout ratios in Ghana. Journal of Risk Finance, 7(2), 136–145. https://doi.org/10.1108/15265940610648580
  5. Apriliani, A., & Natalylova, K. (2017). Faktor-faktor yang mempengaruhi kebijakan dividen pada perusahaan manufaktur di bursa efek indonesi. Jurnal Bisnis Dan Akutansi, 19(1a), 49–57.
  6. Benlemlih, M. (2018). Corporate Social Responsibility and Dividend Policy. Research in International Business and Finance. https://doi.org/https://doi.org/10.1016/j.ribaf.2018.07.005
  7. D’Souza, J. (2010). Agency Cost , Market Risk , Investment Opportunities and Dividend Policy - An International Perspective. Managerial Finance, 25(6), 35–43.
  8. Damayanti, R., Marwati, F. S., & Widayanti, R. (2017). Analisa Kebijakan Dividend Berdasarkan Teori Lintner. Jurnal Ekonomi Dan Bisnis, Vol 1 No 2(September 2017), 183–194. https://doi.org/10.22236/agregat_vol1/is2pp183-194
  9. Fama, E. F., & French, K. R. (2001). Disappearing Dividends: Changing Firm Characteristics or Lower Propensity to Pay? Journal of Applied Corporate Finance, 14.1(Spring 2001). https://doi.org/doi.org/10.1111/j.1745-6622.2001.tb00321.x
  10. Gill, A., Biger, N., & Tibrewala, R. (2010). Determinants of Dividend Payout Ratios: Evidence from United States. The Open Business Journal, 3, 8–14. https://doi.org/10.2174/1874915101003010008
  11. Gordon, M. J. (1963). Optimal Investment and Financing Policy, 264–272.
  12. Hawley, F. B. (1893). The Risk Theory of Profit.
  13. John, S. F., & Muthusamy, K. (2010). Leverage, Growth and Profitability as Determinants of Dividend Payout Ratio-Evidence from Indian Paper Industry. Asian Journal of Business Management Studies, 1(1), 26–30. https://doi.org/10.1182/blood-2009-07-233718.The
  14. Kasmir. (2014). Analisis Laporan Keuangan (1st ed.). Jakarta: PT Raja Grafindo Persada.
  15. Kumar, S., & Ranjani, K. S. (2018). Dividend Behaviour of Indian-listed Manufacturing and Service Sector Firms. Global Business Review. https://doi.org/10.1177/0972150917753863
  16. May, E. (2018). Saham Paling Top 2017 & Peluangnya di 2018.
  17. Modigliani, F. (1985). Life Cycle, Individual Thirft and The Wealth of Nations. Economic Science, (1985), 150–171.
  18. Rahmawati, N. D., Saerang, I. S., & Rate, P. Van. (2014). Kinerja Keuangan Pengaruhnya terhadap Kebijakan Dividen pada Perusahaan BUMN di Bursa Efek Indonesia. Jurnal Ekonomi Dan Bisnis, 2(2), 1306–1317. https://doi.org/10.1016/j.jcrysgro.2005.06.058
  19. Samrotun, Y. C. (2015). Yuli Chomsatu Samrotun Dosen FE Universitas Islam Batik ( UNIBA ) Surakarta size terhadap kebijakan dividen pada perusahaan Industri Barang Konsumsi yang terdaftar di Bursa Efek Indonesia ( BEI ) selama periode tahun 2011-2014 .., 13(01), 92–103.
  20. Wicaksono, S., & Nasir, M. (2014). Analisis faktor-faktor yang mempengaruhi kebijakan dividen pada perusahaan manufaktur yang terdaftar di BEI tahun 2011-2013. Diponegoro Journal Of Accounting, 3, 1–13.
  21. WorldBank. (2017). Manufacturing Value Added GDP.
  22. Zaman, D. R. (2018). Effect of Financial Performance on Dividend Policy in Manufacturing Companies in Indonesia Stock Exchage, (30 January 2018).
  23. Zameer, H. S. R. S. I. ;Umair A. (2013). Determinants of dividend policy: A case of banking sector in Jordan. International Journal of Economic Research, 13(4), 1411–1422. https://doi.org/10.5829/idosi.mejsr.2013.18.3.12200