HOW FINANCIAL RATIO AFFECTS FIRMS DIVIDEND PAYOUT POLICY IN SHARIA SECURITIES LIST?
Keywords:
dividend payout ratio; financial ratio
Abstract
This research aims to determine the effect of financial ratio on the dividend payout ratio of Efek Syariah companies in the Indonesian Stock Exchange (IDX). Financial ratio including current ratio, firm size, leverage, profitability, and free cash flow as the independent variables. The dependent variable uses the dividend payout ratio. This research uses company data between 2014 and 2018, consisting of 145 data samples of 30 companies. The sampling technique uses purposive sampling and analysis method tested by using panel regression. This result showed that firm size has a significant positive influence on the dividend payout ratio. Other variables like current ratio, leverage, profitability, and free cash flow do not significantly affect the dividend payout ratio.
References
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Chan, A. S. (2020). The analysis over the influence on dividend payout ratio through these variables return on assets, debt to equity ratio, and current ratio at manufacturing companies which has been include on Indonesia stock exchange during period 2012-2014. International Journal of Innovative Science and Research Technology, 5(3), 1191–1195.
Fadah, I., Hasanah, N., Endhiarto, T., & Juniar, A. (2020). Determinants of the dividend payout policy of public companies in Indonesia, based on financial ratio analysis. International Journal of Innovation, Creativity and Change, 13(4), 1084–1098.
Hadi, W., & Rahayu, N. (2019). The effect of own capital rentability, solvability, profitability and liquidity on dividend policy in food and beverage sub sector companies listed on Indonesia Stock Exchange (IDX). The Management Journal of Binaniaga, 4(1), 37. https://doi.org/10.33062/mjb.v4i1.352
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Liono, Lambey., & Johan. (2017). The analysis of factors influencing dividend payout ratio in insurance companies listed in Indonesia Stock Exchange (IDX) period 2011-2015. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 5(3), 3664–3673.
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Natalia, A., & Kusumastuti, R. (2017). An analysis of agency costs and dividend payout ratio of non-financial companies. MIMBAR, Jurnal Sosial Dan Pembangunan, 33(2), 259. https://doi.org/10.29313/mimbar.v33i2.2267
Nurwulansari, & Rikumahu, B. (2018). Determinants of dividend payout ratio: A study of listed companies in Indonesia stock exchange. Proceeding of International Seminar & Conference on Learning Organization, 31–51.
Purwohandoko, & Ma’rufatin. (2018). The influence of profitability, sales growth, leverage, company’s size, and free cash flow toward dividend policy: A study on infrastructure sector companies, utility, and transportation listings IDX 2010-2014 period. Journal Research Opinion, 5(11), 2297–2308.
Putri, R. A., & Rokhim, R. (2016). The effect of ownership structure and cash flow to the non-financial firms’ dividend payout ratio listed in IDX. Jurnal Ilmiah Bidang Studi Manajemen Organisasi, Pemasaran, Dan Keuangan, 6(2), 181–194.
Rahmedi, Z. (2020). The influence of return on investment, current ratio, debt to equity ratio, earning per share, and firm size to the dividend payout ratio in banking industries listed at Indonesia stock exchange period 2013-2018. Dinasti International Journal of Digital Business Management, 1(2), 1–16. https://doi.org/10.31933/DIJDBM
Rifqi, A., & Arfianto, E. D. (2018). The influence of profitability, debt to equity ratio, firm size, innovation, and time discounting to dividend payout ratio. Diponegoro Journal of Management, 7(4), 1–11.
Suhartono, A. (2015). The effect of free cash flow and ownership structure on dividend payout ratio in manufacturing companies in Indonesia. The Indonesian Accounting Review, 5(2), 129. https://doi.org/10.14414/tiar.v5i2.643
Yusuf, A., & Muhammed, N. (2015). Determinant of dividend payout in Nigerian banking industry. Scholars Bulletin, 1(9), 253–259.
Zulkarnaen, W., Amin, N. N. (2018). The Effect of Pricing Strategy on Consumer Satisfaction. MEA Scientific Journal (Management, Economics, & Accounting), 2(1), 106-128
Chan, A. S. (2020). The analysis over the influence on dividend payout ratio through these variables return on assets, debt to equity ratio, and current ratio at manufacturing companies which has been include on Indonesia stock exchange during period 2012-2014. International Journal of Innovative Science and Research Technology, 5(3), 1191–1195.
Fadah, I., Hasanah, N., Endhiarto, T., & Juniar, A. (2020). Determinants of the dividend payout policy of public companies in Indonesia, based on financial ratio analysis. International Journal of Innovation, Creativity and Change, 13(4), 1084–1098.
Hadi, W., & Rahayu, N. (2019). The effect of own capital rentability, solvability, profitability and liquidity on dividend policy in food and beverage sub sector companies listed on Indonesia Stock Exchange (IDX). The Management Journal of Binaniaga, 4(1), 37. https://doi.org/10.33062/mjb.v4i1.352
Hudiwijono, R. E. W., Aisjah, S., & Ratnawati, K. (2018). Influence of fundamental factors on dividend payout policy: study on construction companies listed on Indonesian Stock Exchange. Wacana, 21(1).
Lasniroh, T., Sarumpaet, & Suhardi, A. R. (2019). Implications of profitability, liquidity, leverage and MBV on dividend payout ratio in manufacturing companies in IDX 2014-2016. International Journal of Innovation, Creativity and Change, 6(8), 11–25.
Liono, Lambey., & Johan. (2017). The analysis of factors influencing dividend payout ratio in insurance companies listed in Indonesia Stock Exchange (IDX) period 2011-2015. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 5(3), 3664–3673.
Metta, T., & Ricky, A. M. (2019). The influence of creative accounting and other factors to dividend payout ratio. Jurnal Bisnis Dan Akuntansi, 20(1), 51–58. https://doi.org/10.34208/jba.v20i1.408
Murni, Nangoy, & Laim. (2015). Analysis of factors that influencing dividend payout ratio on companies that listed in LQ-45 index stock exchange Indonesia. Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 3(1), 1129–1140.
Natalia, A., & Kusumastuti, R. (2017). An analysis of agency costs and dividend payout ratio of non-financial companies. MIMBAR, Jurnal Sosial Dan Pembangunan, 33(2), 259. https://doi.org/10.29313/mimbar.v33i2.2267
Nurwulansari, & Rikumahu, B. (2018). Determinants of dividend payout ratio: A study of listed companies in Indonesia stock exchange. Proceeding of International Seminar & Conference on Learning Organization, 31–51.
Purwohandoko, & Ma’rufatin. (2018). The influence of profitability, sales growth, leverage, company’s size, and free cash flow toward dividend policy: A study on infrastructure sector companies, utility, and transportation listings IDX 2010-2014 period. Journal Research Opinion, 5(11), 2297–2308.
Putri, R. A., & Rokhim, R. (2016). The effect of ownership structure and cash flow to the non-financial firms’ dividend payout ratio listed in IDX. Jurnal Ilmiah Bidang Studi Manajemen Organisasi, Pemasaran, Dan Keuangan, 6(2), 181–194.
Rahmedi, Z. (2020). The influence of return on investment, current ratio, debt to equity ratio, earning per share, and firm size to the dividend payout ratio in banking industries listed at Indonesia stock exchange period 2013-2018. Dinasti International Journal of Digital Business Management, 1(2), 1–16. https://doi.org/10.31933/DIJDBM
Rifqi, A., & Arfianto, E. D. (2018). The influence of profitability, debt to equity ratio, firm size, innovation, and time discounting to dividend payout ratio. Diponegoro Journal of Management, 7(4), 1–11.
Suhartono, A. (2015). The effect of free cash flow and ownership structure on dividend payout ratio in manufacturing companies in Indonesia. The Indonesian Accounting Review, 5(2), 129. https://doi.org/10.14414/tiar.v5i2.643
Yusuf, A., & Muhammed, N. (2015). Determinant of dividend payout in Nigerian banking industry. Scholars Bulletin, 1(9), 253–259.
Zulkarnaen, W., Amin, N. N. (2018). The Effect of Pricing Strategy on Consumer Satisfaction. MEA Scientific Journal (Management, Economics, & Accounting), 2(1), 106-128
Published
2021-07-15
How to Cite
Candy, C., & Cahyani, I. R. (2021). HOW FINANCIAL RATIO AFFECTS FIRMS DIVIDEND PAYOUT POLICY IN SHARIA SECURITIES LIST?. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 5(2), 1223-1231. https://doi.org/10.31955/mea.v5i2.1111
Section
Articles
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