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FACTORS THAT CONTRIBUTED TO DIVIDEND POLICY (EMPIRICAL STUDY ON MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE 2005-2013)
Investors gain from their investments in form of capital gain or dividend. Investor would choose to have dividends than capital gain, this is because dividend have less uncertainty opposite to a capital gain that will be receive in future time.
However not all company pays dividend. This is because dividend policy is an important factor that must be considered by management in managing the company due to the significant influence to the company itself, as well as other parties such as shareholders and creditors. For companies, the distribution of dividends will reduce the company's cash so that funds are available to finance the operating and investment activities will be reduced. The general public also considers that the company is able to pay dividends as the company that has credibility. This study are trying to indentify the trend of dividend payment policy in Indonesia and find what factors that are affecting the company in dividends policy.
The result of logistic regression shows that Profitability measured by ROA, Sales Growth, EPS Growth, and Capital Expenditure have significant effect on the likelihood that a firm pays dividends.
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