The Influence of Profitability and Growth Opportunity on Dividend Payment of the Firms in the Miscellaneous Industrial Sector in Indonesia Stock Exchange.

Author(s)

Dr. Siti Rahmi Utami , Stacia Dorothy Tobing , Anglia Agnes Longkutoy ,

Download Full PDF Pages: 26-31 | Views: 353 | Downloads: 93 | DOI: 10.5281/zenodo.3461467

Volume 4 - September 2015 (09)

Abstract

The objectives of our research are to examine the impact of profitability and growth opportunity on dividend payment. After analyzing the data of firms in Indonesia over the sample period 2009-2013, by using regression and correlation analysis, for testing hypotheses 1 and 2 to investigate the impact of profitability and growth opportunity on dividend payment, we made the conclusion. For hypothesis 1, we find that there is a positive insignificant effect of profitability on dividend payment, while for hypothesis 2 we conclude that growth opportunity has a positive and significant effect on dividend payment. These implied that the higher profitability and growth opportunity of the firms, the higher dividends pay to firm’s shareholders. 

Keywords

 Profitability, Growth Opportunity, Dividend Payment

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