International Journal of Management and Business Intelligence (IJMBI)
Vol. 1 No. 2 (2023): August 2023

The Effect of Profitability and Liquidity on Dividend Policy

Dwinanto Priyo Susetyo (STIE Pasim Sukabumi, West Java)
Astrid Gloria Frankus (STIE Pasim Sukabumi, West Java)
Deri Firmansyah (STIE Pasim Sukabumi, West Java)



Article Info

Publish Date
16 Sep 2023

Abstract

This study examines the relationship between profitability projected by ROE and liquidity by CR to predict its effect on projected dividend policy with dividend payout ratio (DPR) in food and beverage sector manufacturing companies listed on the stock exchange market. Design and method of analysis, estimation of pandel data regression models with CEM, FEM and REM approaches using the EViews v.12 program. Approach model selection with Chow test, Hausman test, and LM test. The classical assumption test refers to the results of the best panel data regression model selected. The feasibility evaluation of the model was carried out by regression analysis of panel data, and analysis of the coefficient of determination, as well as the t test and F test, at a = 0.05. The results of the study, FEM as a regression model of selected panel data. Evaluation of the feasibility of the model, ROE and CR can predict changes in DPR behavior, although there is an inverse relationship of CR with DPR. The joint contribution of ROE and CR has a high ability to predict and influence the DPR. ROE has a significant negative effect on the DPR. CR has no influence on the DPR. Together, ROE and CR have proven to have a significant positive effect on the DPR.

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Journal Info

Abbrev

ijmbi

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The International Journal of Management and Business Intelligence (IJMBI) is a peer-reviewed international journal is published by Multitech publisher that includes the results of theoretical and applied research in the following areas of Business Intelligence, Management, Finance, Accounting, and ...