Article Per Year (5 Year)
p-Index From 2020 - 2025
0.23
P-Index
This Author published in this journals
All Journal Digital Innovation : International Journal Of Management
Christian Candra Wijaya
Unknown Affiliation
Decision Sciences, Operations Research & Management

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

 1 
Dividend Payout Ratio and Cost of Equity: A Case Study on the Industrial Sector of the Indonesia Stock Exchange Christian Candra Wijaya; Sri Murni
Digital Innovation : International Journal of Management Vol. 2 No. 4 (2025): Digital Innovation : International Journal of Management
Publisher : Asosiasi Riset Ilmu Manajemen Kewirausahaan dan Bisnis Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61132/digitalinnovation.v2i4.550

Abstract

The industrial sector plays a crucial role in driving Indonesia’s economic growth, yet it also faces challenges in optimizing capital structure and shareholder value. One key financial policy that reflects managerial decisions and investor perceptions is the dividend payout ratio, which may influence a firm’s cost of equity. This study aims to examine the effect of the dividend payout ratio on the cost of equity among industrial sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2023 period. The research problem arises from inconsistent empirical evidence regarding whether higher dividend payments reduce or increase the cost of equity. Using a quantitative approach, secondary data were collected from annual financial reports, and samples were selected through purposive sampling, yielding 162 valid observations. Linear regression analysis was performed using EViews 13 software. The findings reveal a negative and statistically significant relationship between the dividend payout ratio and the cost of equity. The study concludes that higher dividend payouts can lower firms’ cost of equity, supporting the signaling theory.
Co-Authors Sri Murni