The Effect of Profitability (ROA) and Free Cash Flow on Dividend Payout Ratio in Manufacturing Companies Listed on the IDX in 2019-2022

Authors

  • Nasrulloh Nasrulloh Universitas Pertiwi
  • Joelianti Dwi Supraptiningsih Universitas Pertiwi
  • Vivi Alvianingsih Universitas Pertiwi

DOI:

https://doi.org/10.58258/jisip.v8i2.6622

Keywords:

Profitabilitas, Free Cash Flow, Dividend Payout Ratio, Perusahaan Manufaktur, Bursa Efek Indonesia

Abstract

This study aims to analyze the effect of profitability (ROA) and free cash flow on the dividend payout ratio in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2019-2022 period. Data was collected from manufacturing companies using quantitative methods and analyzed using multiple regression with the help of the SPSS program. The findings of this study indicate that profitability and free cash flow have a significant influence on the dividend payout ratio. This indicates that the financial performance of manufacturing companies has an impact on dividend payout policy. In addition, this study also reveals that manufacturing companies that are able to manage their assets effectively and efficiently tend to have good financial performance, which allows them to pay cash dividends. The results of this study provide new insights into understanding the relationship between financial factors and the dividend policy of manufacturing companies. The implications of these findings can be an important consideration in making investment decisions in the stock market, as well as contributing to understanding the financial dynamics of manufacturing companies on the IDX. 

Downloads

Published

2024-03-01

Issue

Vol. 8 No. 2 (2024): JISIP (Jurnal Ilmu Sosial dan Pendidikan) (Maret)

Section

Articles

License

Copyright Notice
Authors who publish with JISIP (Jurnal Ilmu Sosial dan Pendidikan) agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal. 
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.

How to Cite

The Effect of Profitability (ROA) and Free Cash Flow on Dividend Payout Ratio in Manufacturing Companies Listed on the IDX in 2019-2022. (2024). JISIP (Jurnal Ilmu Sosial Dan Pendidikan), 8(2), 1016-1025. https://doi.org/10.58258/jisip.v8i2.6622