The Effect of Insider Ownership, Debt To Equity Ratio, Cash Flow, Investment Opportunities, Profit Growth on Dividend Payout Ratio

Abstract

Annisa. (2007). The Effect of Insider Ownership, Debt to Equity Ratio, Cash Flow, Investment Opportunities, and Profit growth on Dividend Payout Ratio. Accounting Department. International Program. Faculty of Economics. Islamic University of Indonesia, Yogyakarta. Dividend is source information for shareholders and investors as a signal whether the company has capability to get high profit and will distribute as well as profit earned. The dividend decides in the general shareholder's meeting which is consist ofdirectors, managers, and shareholders. Dividend policy is apolicy toset the portion of dividend paid to shareholders. The purpose of this study is to examine the dividend payout determinants of manufacturing companies listed in Jakarta Stock Exchange (JSX). The researcher intends to analyze the effect of insider ownership, debt to equity ratio, cash flow, investment opportunities, and profit growth on dividend payout ratio. In order to achieve that purpose, the multiple linear regression model uses to analyze the population consist of 25 manufacturing companies listed inJSX during the research period of 2002-2004. The results of final regression analysis show that insider ownership, debt to equity ratio, cash flow has no significant influence on dividend payout ratio while investment opportunities and profit growth has significant influence on dividend payout ratio. Some of the relationship between independent variables on dependent variable is not as the researcher expected to be.