Cash dividend: Debt policy and liquidity in Indonesian consumer cyclicals company

Authors

Ella Rahmayanti , Saryati , Khairul Aswadi

DOI:

10.62941/irefi.v1i1.10

Issue:

Vol. 1 No. 1 (2024)

Keywords:

cash dividend, debt policy, liquidity
Received: Feb 05, 2024
Accepted: Jul 20, 2024
Published: Jul 21, 2024

Research Article

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How to Cite

Rahmayanti, E., Saryati, & Aswadi, K. (2024). Cash dividend: Debt policy and liquidity in Indonesian consumer cyclicals company. International Review of Economics and Financial Issues, 1(1), 25–37. https://doi.org/10.62941/irefi.v1i1.10

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Abstract

This study aims to investigate whether debt policy in Indonesia tends to commit cash dividend and whether liquidity maximizes cash dividend. Using a purposive sampling technique, 16 consumer cyclicals companies were selected as research samples that are wholly registered on the Indonesia Stock Exchange. A total of 142 firm-year observations were provided by their annual reports from 2018-2021 and processed within the multiple linear regression statistical method. The study depicts that debt policy negatively affects cash dividend. Meanwhile, the liquidity ratio cannot maximize or minimize cash dividend payments by companies.

References

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Author Biographies

Ella Rahmayanti, Department of Accounting, Faculty of Economics and Business, Universitas Islam Kebangsaan Indonesia, Bireuen, Indonesia

Saryati, Department of Accounting, Faculty of Economics and Business, Universitas Islam Kebangsaan Indonesia, Bireuen, Indonesia

Khairul Aswadi, Department of Management, Faculty of Economics and Business, Universitas Islam Kebangsaan Indonesia, Bireuen, Indonesia

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Copyright (c) 2024 Ella Rahmayanti, Saryati; Khairul Aswadi

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