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Journal : Research Horizon

The Effect of Profitability, Liquidity, and Leverage on Dividend Policy with Firm Size as a Moderating Variable Susanto, Herry; Rahmawati, Mia Ika
Research Horizon Vol. 6 No. 1 (2026): Research Horizon - February 2026
Publisher : LifeSciFi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54518/rh.6.1.2026.987

Abstract

This study aims to examining and analysing how profitability, liquidity, and leverage affect dividend policy is the goal of this study. It also seeks to determine whether business size influences the correlations between these variables. The study focuses on businesses that were part of the Indonesia Stock Exchange’s (IDX) LQ45 index between 2021 and 2024. Purposive sampling was used to choose the sample, and only companies that regularly paid dividends during the observation period were included. The IDX audited yearly financial statements serve as the data source. Data analysis was conducted using multiple linear regression and moderated regression analysis. Profitability and liquidity have a positive and significant effect on dividend policy, while leverage has a negative and significant effect. Firm size strengthens the relationship between liquidity and dividend policy but does not moderate the effects of profitability and leverage. These results highlight how crucial it is for a company to sustain profitability and efficiently manage its capital structure to guarantee the long-term viability of dividend payments. The study’s findings might be considered by investors when evaluating a company’s stability and prospects in light of its size and financial performance.
Co-Authors - Sutrisno ., Rohmani Ade Sutrimo Agus Suharto, Agus Ahmad Ikhlasul Amal Amelia, Vivi Leona Andriansyah, Septian Anggreyani, Rainatha Arif, Faiz Al Ariyanto Nugroho Aslamiah Aslamiah Asyari Asyari Daryus, Asyari Budhi Susetyo, Ferry Chung, Min-Huey Cipta Ginting, Cipta Dad R. J. Sembodo, Dad R. J. Dad Resiworo J. Sembodo, Dad Resiworo Dariyus, Asyari DARSONO Desi Pujiati, Desi Didik Sugiyanto Dina Nur Anggraini Ningrum Djabumir, Sendi Setiawan Dwi Cahyani Dwi Widiastuti, Dwi Edy, Akari Ericson, Gaol Uli Lumban Ermawati Erna Melastuti, Erna Erwin Erwin - Erwin, Erwin - Fandikurnia, Ade Gipta Galih Widodo Hamim Sudarsono . Handaya Handaya Hasriadi Mat Akin Hidayat Pujisiswanto Husen Asbanu Ibrohim Isna Hudaya, Isna Juan Pratama Karnadi, Karnadi Khudoifah, Umi Lesmana, Mohammad Hendra Setia Lestari, Andriani Dwi Loan Thi Dang Marimin Marimin Mega Hasanul Huda Muhammad Muslih Muhtar, Muhammad Solihuddin Nabila Dwi Desi Puspita Nafisah, Durratun Nana Ratna Wati Nanik Sriyani Nareswari Pratita Niar Nurmauli, Niar Nola Marina Nopi Nur Khasanah Novendri, Yos Oktavia, Kurnia Paramastri, Rathi Pramesti, Elisa Amelia Putra, Hasriza Eka Putrie Lestari, Dewi R. Rr Maria Dyah Kurniasari Raden Dikky Indrawan Rahayu, Weny Feftiana Rahmawati, Mia Ika Ramadiana, Sri Rifa'i, Thaher Rusdi Evizal Saban, Muhamad Zaki Santi Damayanti Sembodo, Dad Resiworo Jekti Sembodo, Dad RJ Sephianti, Resky Salsasisca Siregar, Rolan Siti Fadlilah Sri Wahyuni Sugiatno Sugiatno Sugiyarto Sugiyarto Suparyatmi, Sri Suyanto Suyanto Tri Maryono Trisna Ardi Wiradinata Widhiastuti, Erma yefri chan Yendi Esye