FACTOR AFFECTING DIVIDEND POLICY IN FOOD AND BEVERAGE INDUSTRY

Abstract

For the period 2016 to 2019, this study aims to empirically evaluate the factors that influence the dividend policy in the food and beverage industry. With descriptive statistical analysis, classical assumption test, multiple linear regression test, and hypothesis testing, there are five independent variables tested. The population in this study was food and beverage companies and each quarter took 6 samples of businesses that met certain requirements for the period 2016-2019. The approach used for multiple linear regression is the Random Effect Model on panel results. The results showed that the modified R-squared value was 25.62% between the dependent variable and in hypothesis testing, cash flow from operations, return on equity, debt equity ratio , cash ratio, and business size had a major influence on dividend policy. At the same time, in the results of a panel regression study, return on equity, debt equity ratio , cash ratio, and business size have a major influence on dividend policy and cash flow from operations have not influence on dividend policy. Sales growth is capable of moderating the impact of return on equity on dividend policy and is unable to moderate the impact of business size on dividend policy.