The Influence of Investment, Liquidity and Profitability on Dividend Payout Ratio Policies of the 2015-2019 Indonesia Stock Exchange Listed LQ-45 Companies

Abstract

Dividend policies aim to determine the number of dividends to shareholders and the amount to be reinvested (retained earnings). In this study, dividend policies were measured using the Dividend Payout Ratio (DPR). This study aimed to test and analyze the influence of investment, liquidity, and profitability on dividend payout ratio policies of the 2015-2019 Indonesia Stock Exchange Listed LQ-45 companies. The purpose is to find out and examine the pattern of Investment, Liquidity, and Profitability in the Dividend Payout Ratio Policy of Companies listed on LQ-45 Indonesia Stock Exchange 2015-2019. The subjects of this study were the Indonesia Stock Exchange Listed LQ-45 companies while the objects were the 2015-2019 financial statements. The population of this study was 45 companies with 30 companies as the samples after purposive sampling. Data were analyzed using multiple linear regression, classical assumption test, and hypothesis testing. The results of research in partially, investment and profitability had a significant and positive influence on the dividend payout ratio policies while liquidity had no influence on the dividend payout ratio policies. Simultaneously, investment, liquidity, and profitability had an 11.8% influence on the dividend payout ratio policies while the remaining 88.2% were explained by other variables such as leverage ratio, growth, and others.