THE INFLUENCE OF EARNINGS PER SHARE (EPS), RETURN ON ASSETS (ROA), AND RETURN ON EQUITY (ROE) ON DIVIDEND PAYOUT RATIO (DPR) IN THE MINING INDUSTRY IN INDONESIA FROM 2010 TO 2014

Abstract

Indonesia mining industry has a decreasing growth and export value shows from the declining trend in profitability. The decline in profitability will give an impact in distribution or payment of dividend. This research chooses the mining industry from 2010 to 2014. Through purposive sampling, this research took 40 samples from 8 mining companies in 5 years which fulfill the criteria. This research uses quantitative research, which uses some analysis such as descriptive statistics analysis, classical assumption, multiple regression analysis and hypothesis testing. This research aims to analyze and proven the significant influences in partial and simultaneously of profitability which are earnings per share (EPS), return on assets (ROA), and return on equity (ROE) on dividend payout ratio (DPR). This research uses SPSS 16.0 as the statistical tool to process the data. From 8 mining companies that examine in this research ROA is chosen as the most significant factor because the higher value ROA is shown the effectiveness of company in using their asset to generate the profit and will be followed by the increasing of dividend. This research recommends that the companies should be concerned to factors that influence DPR to prevent the problem regarding distribution or payment of dividend.