Effect Of Profitability, IOS, FCF And Collateralizable Assets To Dividend
Agnes Juliarti, Sumani

Universitas Katolik Indonesia Atma Jaya

Abstract

In the middle of the development and progress of the business world, the competition between companies encourages companies to have a competitive advantage, one of which is reflected in the companys dividend policy. This study will examine the effect of profitability, investment opportunity set (IOS), free cash flows (FCF), and collateralizable assets (CA) on dividend policy. Research population are companies listed on BEI in manufacturing industry sector of consumer goods industry in the period 2013-2015. The number of samples used in the study were 19 companies. The results show that profitability and IOS variables have a significant negative effect on corporate dividend policy while FCF and CA have no significant effect on company dividend policy.

Keywords: dividend policy, profitability, investment opportunity set (IOS), free cash flows (FCF), and collateralizable assets (CA)

Topic: Financial Management and Accounting