DIVIDEND POLICY AND PROFITABILITY: AN EMPIRICAL ANALYSIS OF COMPANIES LISTED ON THE IDX

Jurnal Riset Bisnis dan Manajemen 2026 Open access

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Authors: Maria Lusiana Yulianti, Budi Supriatono Purnomo, Imas Purnamasari, Maya Macia Sari
DOI: 10.23969/jrbm.v19i1.37720
Cited by: 0
References: 8

Abstract

This study investigates the relationship between dividend policy and profitability among companies listed on the Indonesia Stock Exchange (IDX) during 2020-2024. Employing panel data analysis on manufacturing and service sector firms, this research examines how profitability metrics influence dividend payout decisions. The findings reveal significant positive relationships between ROA, ROE, and dividend payout ratios, supporting signaling theory. Firm size, leverage, and free cash flow are identified as important determinants of dividend policy. Results provide valuable insights for investors, managers, and policymakers, suggesting that profitable firms distribute higher dividends to signal financial strength and reduce agency conflicts.

Fields of Study & Subjects

Corporate Finance and Governance Financial Analysis and Corporate Governance Corporate Governance and Financial Management

Publication details

Journal / source
Jurnal Riset Bisnis dan Manajemen
Volume
19
Issue
1
Pages
179–196
Publication date
16 February 2026
Language
EN