Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange
This study aims to determine the assessment of financial performance and the effect on dividend policy of banking companies listed on the Indonesia Stock Exchange in the period of 2014–2017. The assessment of the company’s financial performance is important. Results of the assessment will be conside...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2019-05-01
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| Series: | Banks and Bank Systems |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/11926/BBS_2019_02_Puspitaningtyas.pdf |
| _version_ | 1818511018957996032 |
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| author | Zarah Puspitaningtyas |
| author_facet | Zarah Puspitaningtyas |
| author_sort | Zarah Puspitaningtyas |
| collection | DOAJ |
| description | This study aims to determine the assessment of financial performance and the effect on dividend policy of banking companies listed on the Indonesia Stock Exchange in the period of 2014–2017. The assessment of the company’s financial performance is important. Results of the assessment will be consideration of financial performance for investors, one of them to predict the dividend policy. The prediction results will influence investors in making investment decisions. This study employs a quantitative approach. The assessment of financial performance is measured using variables of leverage, profitability and profit growth. They were analyzed using the multiple linear regression method. At the 0.05 significance level, the results of this study showed that the leverage has a negative and significant effect on dividend policy. Meanwhile, profitability and profit growth have no effect on dividend policy. In order to explain the influence between variables, the research is based on the theories underlying the dividend policy, namely the theory of residual dividends and smoothing theory. The results of this study support the residual dividend theory, that one of the dividend policies is determined by the company by considering the target capital structure and then distributing dividends with only the remaining profit. |
| first_indexed | 2024-12-10T23:27:50Z |
| format | Article |
| id | doaj.art-2b719dbf92c348efbced5fd97f65cc11 |
| institution | Directory Open Access Journal |
| issn | 1816-7403 1991-7074 |
| language | English |
| last_indexed | 2024-12-10T23:27:50Z |
| publishDate | 2019-05-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Banks and Bank Systems |
| spelling | doaj.art-2b719dbf92c348efbced5fd97f65cc112022-12-22T01:29:30ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742019-05-01142243910.21511/bbs.14(2).2019.0311926Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock ExchangeZarah Puspitaningtyas0Doctor, Lecturer, University of JemberThis study aims to determine the assessment of financial performance and the effect on dividend policy of banking companies listed on the Indonesia Stock Exchange in the period of 2014–2017. The assessment of the company’s financial performance is important. Results of the assessment will be consideration of financial performance for investors, one of them to predict the dividend policy. The prediction results will influence investors in making investment decisions. This study employs a quantitative approach. The assessment of financial performance is measured using variables of leverage, profitability and profit growth. They were analyzed using the multiple linear regression method. At the 0.05 significance level, the results of this study showed that the leverage has a negative and significant effect on dividend policy. Meanwhile, profitability and profit growth have no effect on dividend policy. In order to explain the influence between variables, the research is based on the theories underlying the dividend policy, namely the theory of residual dividends and smoothing theory. The results of this study support the residual dividend theory, that one of the dividend policies is determined by the company by considering the target capital structure and then distributing dividends with only the remaining profit.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/11926/BBS_2019_02_Puspitaningtyas.pdfdividend policyleverageprofit growthprofitability |
| spellingShingle | Zarah Puspitaningtyas Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange Banks and Bank Systems dividend policy leverage profit growth profitability |
| title | Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange |
| title_full | Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange |
| title_fullStr | Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange |
| title_full_unstemmed | Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange |
| title_short | Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange |
| title_sort | assessment of financial performance and the effect on dividend policy of the banking companies listed on the indonesia stock exchange |
| topic | dividend policy leverage profit growth profitability |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/11926/BBS_2019_02_Puspitaningtyas.pdf |
| work_keys_str_mv | AT zarahpuspitaningtyas assessmentoffinancialperformanceandtheeffectondividendpolicyofthebankingcompanieslistedontheindonesiastockexchange |