FACTORS INFLUENCING DIVIDEND POLICY IN MANUFACTURING COMPANIES

Abstract

Purpose: This research aims to analyze and provide empirical evidence on cash position, collateralizable assets and firm's life cycle on dividend policy with firm's size and debt to equity ratio as the control variables. Methodology: The population includes manufacturing companies listed on Indonesia Stock Exchange and The Philippines Stock Exchange during the period of 2015-2017. The total samples of 144 were gathered from Indonesia and 81 samples were gathered from Philippine. To analyze the data, a quantitative data analysis method was used and to calculate the data, statistical method with Eviews application was used which consists of descriptive statistic test, classical assumption test, panel data regression, and the hypothesis testing. Findings: the results revealed that cash position has a significant effect on dividend policy on both Indonesian samples and Philippine samples. Whereas, collateralizable assets, firm's life cycle, firm's size, and debt to equity ratio do not have significant effects on dividend policy on both Indonesian and Philippine. It is recommended that future research add the number of company samples from other industries, not only manufacturing. It is also suggested to use company samples from other countries outside the scope of this research, and to increase the number of observed data by expanding the observed years. Additionally, it is also suggested to add other variables such as growth rate, market to book value, investment opportunity set that may potentially affect dividend policy. Value: comparison of determinants of dividend policy in Indonesia and Philippine.