The Influence of Profitability, Liquidity, Investment Opportunity Set, Managerial Ownership and the Independent Board of Commissioners on Dividend Policy

Abstract

Purpose: This study aims to determine the influence of Profitability, Liquidity, Investment Opportunity Set, Managerial Ownership and the Independent Board of Commissioners on Dividend Policy.

Design/methodology/approach: This study uses quantitative data, the sample in this study is 9 industrial sector companies listed on the Indonesia Stock Exchange in the period 2017 – 2023. The analysis technique used to test the hypothesis is multiple regression analysis using Eviews9 software.

Findings: The test results show that Profitability and managerial ownership have a positive and insignificant effect on the Dividend Policy, while Liquidity has a positive and significant effect on the Dividend Policy, and the Investment Opportunity Set and the Independent Board of Commissioners have a negative and insignificant effect on the Dividend Policy.

Research limitations/implications: This study discusses Dividend Policy and other factors such as Profitability, Liquidity, Investment Opportunity Set, Managerial Ownership and the Independent Board of Commissioners which focuses on industrial sector companies. This study uses the Dividend Payout Ratio as a measurement of the Dividend Policy.