The Influence of Profitability, Liquidity, Leverage, and Company Growth to Dividend Policy on Agricultural Companies In Indonesia Stock Exchange

Abstract

Capital Market Issuers in Indonesia are divided into several sectors. One of them is
the agricultural sector. The agricultural sector contributes 1.69% of the total market
capitalization in the Indonesia Stock Exchange (IDX). The agricultural sector is the
owner of the smallest capitalization value compared to other sectors, this is because
the number of agricultural sector issuers is also smaller than other sector issuers. So
far the author has not found a research focusing on agricultural sector companies.
Population in this research is all agriculture company in Indonesia Stock Exchange,
sample is determined by purposive sampling method. This research is focused to
know the influence of financial ratios namely Profitability, Liquidity, Leverage,
and Company Growth to dividend policy on agricultural companies in Indonesia
Stock Exchange period 2011-2016. The dependent variable in this study is
Dividend Policy, and the independent variable consists of Profitability, Liquidity,
Leverage, and Company Growth. Methods of data analysis using multiple linear
regression analysis. The result of multiple linear regression test shows that
profitability ratio measured by Return on Asset has significant influence to the
dividend policy, while other independent variables have no significant influence to
dividend policy. The result of determination coefficient test shows that 19.8%
dependent variable in this research can be explained by the model of this research.
Keyword: Profitability, Liquidity, Leverage, Growth, Dividend