OPERATING CASH FLOW, INTEREST EXPENSE AND CAPITAL EXPENDITURE AS DETERMINANTS OF DIVIDEND PAYOUT

Abstract

This study is conducted to develop a new model for determining dividend payout. To do that, the researcher would like to find out the direction and significance of relationships between operating cash flow, interest expense, capital expenditure and dividend payout. The value of the variables would be taken from annual reports. The data population is all manufacturing firms in Indonesia which are listed in Indonesia Stock Exchange for the period 2013-2017. The data collection is done based on purposive sampling technique. There are 12 firms selected as the sample with the total 60 observable data. This study uses statistical analysis method in form of multiple regression analysis in order to test the hypotheses. The finding of this study shows that operating cash flow has positive significant effect, interest expense has negative less significant effect, and capital expenditure has positive less significant effect towards dividend payout.