Year: 2024 | Month: June | Volume: 11 | Issue: 6 | Pages: 135-146
DOI: https://doi.org/10.52403/ijrr.20240616
The Effect of Profitability, Liquidity, Leverage, Investment Opportunity Set, and Free Cash Flow on Dividend Policy with Firm Size as a Moderation Variable
Fransisca Desliana Sinukaban1, Azhar Maksum2, Erlina3
1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia
Corresponding Author: Fransisca Desliana Sinukaban
ABSTRACT
This study aims to determine the effect of profitability, liquidity, leverage, investment opportunity set, and free cash flow on dividend policies with firm size as moderation variables in manufacturing sector companies listed on the Indonesia Stock Exchange 2018-2022. The population used in this study was a manufacturing company listed on the Indonesia Stock Exchange in the 2018-2022 period. The sampling technique used was the purposive sampling method, where the final sample was obtained from as many as 37 companies with observations for five years, resulting in a total of 185 observations. Data Analysis Techniques Using Panel Data Regression with the Moderated Regression Analysis (MRA) Approach to use the E-Views Ver Statistics Application. 9.
The results of this study indicate that Return on Assets, Current Ratio, Investment Opportunity Set, and Free Cash Flow have a positive and significant effect on partial dividend policies. At the same time, the debt-to-equity ratio does not partially affect the dividend policy. Firm size can moderate the impact of the current ratio and investment opportunity set on partial dividend policy. However, the company's size cannot moderate the effect of return on assets, debt-to-equity ratio, and free cash flow on partial dividend policies.
Keywords: dividend policy, return on assets, current ratio, investment opportunity set, debt to equity ratio, free cash flow
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