Aspects Influencing the Dividend Payout Ratio of the Indonesian Manufacturing Sector Amid the Covid-19 Epidemic

Abstrak

The objective of this research endeavor is to examine the impact of assets, free cash flow (FCF), return on assets (ROA), current ratio (CR), and debt to equity (DER) on the dividend payout ratio (DPR). Therefore, the problem formulations in this study include: (i) does FCF affect DPR?; (ii) does ROA affect DPR?; (ii) does CR affect DPR?; (iv) does DER affect DPR?; (v) does assets affect DPR?. The methods used in this research are quantitative, using multiple regression. Furthermore, secondary data is sourced from the Indonesia Stock Exchange for the 2017–2020 period. The number of samples used amounted to 42 manufacturing companies. The results of this study found that the variables (i) FCF has a positive and significant effect on DPR; (ii) ROA variable has a negative and insignificant effect on DPR; (iii) CR variable has a positive and insignificant effect on DPR; (iv) DER variable has a negative and significant effect on DPR; and (v) company size or asset variable has a negative and significant effect on DPR. The implication of this research is to provide information to stakeholders in the construction sector related to factors that can affect DPR. The originality of this research lies in the object related to the construction sector, which is very important in the Indonesian economy.