Dividend Policy Determinant: Evidence from Indonesia

Abstract

This study aims to analyze the effect of Debt to Equity Ratio (DER), Current Ratio (CR), Return on Equity (ROE), and Earning Per Share (EPS) on dividend policy in companies listed in the LQ45 index on the Indonesia Stock Exchange from 2015 to 2020. The purposive sampling method was used to collect data from 24 companies listed in the LQ45 index on the Indonesia Stock Exchange from 2015 to 2020 and analyzed using the panel data regression analysis. The results showed that the most suitable model was the fixed effect model. EPS and DER variables have an effect on dividend policy, while CR and ROE variables do not affect dividend policy.