ANALYSIS OF THE MOST SIGNIFICANT FACTOR INFLUENCING CASH DIVIDEND (A CASE STUDY OF PT. ASTRA INTERNATIONAL, TBK.)

Abstract

This study is performed to examine the relation of Current Ratio (CR), Earnings per Share (EPS), and Return on Asset (ROA) toward Cash Dividend in PT. Astra International, Tbk. The objective of this study is to scale and analyze the most dominant factor affecting Cash Dividend between all independent variables which consist of Current Ratio (CR), Earnings per Share (EPS), and Return on Asset (ROA) in PT. Astra International, Tbk. over period July 2007 – June 2012. Sampling technique used here is purposive sampling on criterion (1) the semi annually data of Current Ratio of PT. Astra International during July 2007 – June 2012; (2) the semi annually data of Earnings per Share of PT. Astra International during July 2007 – June 2012; (3) the semi annually data of Return on Asset of PT. Astra International during July 2007 – June 2012 and (4) the semi annually data of Dividend of PT. Astra International during July 2007 – June 2012. The data is obtained based on PT. Astra International, Tbk. publication. It is gained sample amount of 10 data. The analysis technique used here is multiple regressions with the least square difference and hypothesis test using t-statistic to examine partial regression coefficient and f-statistic to examine the mean of mutual effect. In addition, classical assumption is also performed including normality test, multicolinearity test, heteroscedasticity test and autocorrelation test. The result of this research shows that only Earnings per Share (EPS) and Return on Asset (ROA) variables have significant influence to Cash Dividend, while Current Ratio (CR) has not significant influence to Cash Dividend. The result which not significant from this result show that Current Ratio (CR) cannot be made as reference in determining the payment of cash dividend distribution to investor in PT. Astra International, Tbk.