THE INFLUENCE OF LIQUIDITY, PROFITABILITY, SOLVENCY, AND COMPANYSIZE ON DIVIDEND POLICY IN THE PRIMARY CONSUMER GOODS INDUSTRY

Abstract

The aim of this study is to examine the influence of liquidity, profitability, solvency, and company size on dividend policy in the primary consumer goods sector companies listed on the Indonesia Stock Exchange during the period 2017-2022. The sample in this study uses purposive sampling method comprising 23 companies with a total of 138 data over six years. This research use multiple regression method for data analysis The results of this study indicate that liquidity variable (current ratio) and profitability (return on asset) have a significant positive effect at a significant level of α=1%, whereas solvency (debt to equity ratio) and company size do not affect dividend policy (dividend payout ratio). This study also demonstrates that current ratio, return on asset, debt to equity ratio, and size account for 31.07% of the variance in explaining dividend payout ratio. Meanwhile, the remaining 68.93% is explained by other variables not examined in this study