THE EFFECT OF COMPANY INTERNAL FACTORS ON DIVIDEND POLICY COMPANY REGISTERED PHARMACY IN INDONESIA STOCK EXCHANGE: PERIOD 2010-2017 Abdullah Shulton 1), Iman Sofian Suriawinata 2), Rimi Gusliana Mais3)
Sekolah Tinggi Ilmu Ekonomi Indonesia Jakarta, Indonesia
This research aims to examine the influence of company internal factors consisting of current ratio, return on assets, debt to equity ratio, earnings growth, and firm size affecting the dividend payout ratio on pharmaceutical companies listed on the Indonesia Stock Exchange (IDX). This research uses quantitative research, which is measured using a panel data regression method based on eviews10. The population of this study is pharmaceutical companies that are listed on the Indonesia Stock Exchange (IDX) in 2010-2017. Number of Samples 8 (eight) pharmaceutical companies, this study as many as 64 (sixty four) observations. Data collection techniques through documentation through the official website of IDX: www.idx.co.id. Hypothesis testing using t test. Based on the results of research that has been done to prove that, the companys internal factors of return on assets which have a positive influence on the dividend payout ratio. The results of this study mean return on assets has increased due to the net profit of pharmaceutical companies. While the debt to equity ratio has a negative effect on other possibilities, because the companys profit is prioritized to pay interest. While the current ratio, earnings growth, and firm size have no effect on the Dividend Payout Ratio. The results of this study, the larger the pharmaceutical company retained earnings to finance the needs of companies that are increasingly large so that the ratio of dividend payments of pharmaceutical companies decreases, but the value of the dividend may not decrease.
Keywords: Dividend Payout Ratio, current ratio, return on asset, debt to equity ratio, earning growth, and firm size