The Effect of Return on Investment, Cash Ratio, and Debt to Total Assets Towards Dividend Payout Ratio (A Study Towards Manufacturing Companies Listed in Indonesia Stock Exchange)

摘要

The purposes of this study were to test and prove empirically the effects of Return on Investment, cash ratio, and debt to total asset ratio towards dividend payout ratio among manufacturing companies listed in Indonesia Stock Exchange during the period of 2012–2014. By usingpurposive sampling method, 22 manufacturing companies were chosen as the sample. Hence, by using panel data there were 66 observations. These data were then analyzed by using multiple regression method. The results of this study showed that Return on Investment, cash ratio, and debt to totalasset ratio have a significant effect towards dividend payout ratio simultaneously. Partially, Return on Investment has a positive and significant impact toward dividend payout ratio; debt to total assets ratio has a negative and significant impact toward dividend payout ratio, while cashratio does not have any significant impact toward dividend payout ratio. The regression equation could produce the coefficient of determination with the amount of 0.65.