Effect Debt Policy On Profitability, And Dividend
(Studies On Indonesia State Enterprises)
DOI:
https://doi.org/10.51903/e-bisnis.v14i1.848Keywords:
Debt Policy, Profitability, Liquidity, BUMNAbstract
This study aims to examine the phenomenon of debt in state enterprises (BUMN) which is excessive without being followed by an increase in profitability. The sample used is state-owned enterprises (BUMN), the various business sectors for the 2015-2018 period. Using purposive sampling got 137 samples and data processing using the IBM SPSS series 23 program. The result is that debt policy has a negative impact on profitability; it does not prove liquidity to affect profitability. It does not prove liquidity to determine dividends. Debt policy has a negative effect on dividends, and profitability has a positive effect on dividends.
References
References
[1] UNDANG-UNDANG REPUBLIK INDONESIA, NOMOR 13 TAHUN 2003
[2] Stiglitz JE. of the Miller Theoremn. Am Econ Rev 1969; 59: 784–793.
[3] Myers SC, Majluf NS. Corporate financing and investment decisions when firms have information that investors do not have. J financ econ 1984; 13: 187–221.
[4] Vasiliou D, Eriotis N, Daskalakis N. Testing the pecking order theory: the importance of methodology. Qual Res Financ Mark 2009; 1: 85–96.
[5] Abor J. The effect of capital structure on profitability: an empirical analysis of listed firms in Ghana. J Risk Financ 2005; 6: 438–445.
[6] Dawar V. Article Information : Agency Theory, Capital Structure and Firm Performance. Manag Financ 2014; 40: 25.
[7] Atanasova C, Gatev E, Shapiro D. The corporate governance and financing of small-cap firms in Canada. Manag Financ 2016; 42: 244–269.
[8] Isik O, Tasgin UF. Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model. Int J Econ Financ 2017; 9: 66.
[9] Vătavu S. The Impact of Capital Structure on Financial Performance in Romanian Listed Enterprises. Procedia Econ Financ 2015; 32: 1314–1322.
[10] Gill A, Biger N, Tibrewala R. Determinants of Dividend Payout Ratios: Evidence from United States~!2010-01-07~!2010-04-06~!2010-05-12~! Open Bus J 2010; 3: 8–14.
[11] ANALYSIS OF RELATIONSHIPS BETWEEN DETERMINANTS OF CAPITAL STRUCTURE ACROSS INDUSTRIES AT JAKARTA STOCK EXCHANGE Christina 1 ; Johan Halim 2. 99–115.
[12] Kim YH, Rhim JC, Friesner DL. Interrelationships among Capital Structure, Dividends, and Ownership: Evidence from South Korea. Multinatl Bus Rev 2007; 15: 25–42.
[13] Al-malkawi HN. Determinants of Corporate Dividend Policy in Jordan : An Application of the Tobit Model Department of Finance and Banking Faculty of Administrative and Financial Sciences. J Econ Adm Sci 2007; 23: 44–70.
[14] BRIGHAM EF. Brigham, Eugene F._ Houston, Joel F. - Fundamentals of financial management-Cengage Learning (2020).pdf.
[15] Jensen MC. Journal of Social and Personal. J Soc Pers Relatsh 1986; 15: 755–773.
[16] Easterbrook FH. Two Agency-Cost Explanations of Dividends. Am Econ Rev 1984; 74: 650–659.
[17] Chandrarin G, Cahyaningsih DS. Identifikasi Struktur Modal Melalui Profitabilitas, Pertumbuhan Penjualan dan Ukuran Perusahaan. AFRE (Accounting Financ Rev 2018; 1: 36–45.
[18] Gusni G. The Determinants of Dividend Policy: A Study of Financial Industry in Indonesia. J Keuang dan Perbank 2017; 21: 562–574.
[19] Lintner J. of Economics PRICES AND THE SUPPLY OF CAPITAL TO CORPORATIONS. Rev Econ Stat 1962; 44: 243–269.
[20] Gordon MJ. Optimal Investment and Financing Policy. J Finance 1963; 18: 264.
[21] Sudipto Bhattacharya. and Imperfect policy , in the hand " fallacy " the bird. 1979; 10: 259–270.
[22] Ahmed Sheikh N, Wang Z. Determinants of capital structure: An empirical study of firms in manufacturing industry of Pakistan. Manag Financ 2011; 37: 117–133.
[23] Chukwunweike V. The Impact of Liquidity on Profitability of Some Selected Enterprises: The Financial Statement Analysis (FSA) Approach. Res J Financ Account www.iiste.org ISSN 2014; 5: 81–90.
[24] Eljelly AMA. Liquidity – profitability tradeoff: An empirical investigation in an emerging market. Int J Commer Manag 2004; 14: 48–61.
[25] Naim S. Al-Qadi. The Relationship Between Liquidity and Profitability - An Empirical Study on the ISE100 Manufacturing Sector. J Financ Account • April 2018 2018; 9: 153–157.
[26] Hidayat MS, Purwani HD, Soetjanto JR. The Influence of Liquidity on Dividend Policy ( Study in Manufacturing Company Sector of Consumer Goods Sub Sector Food and Beverage Listed on the Indonesian Stock Exchange in 2010-2014 ). Int J Innov Sci Res Technol 2018; 3: 422–427.
[27] Ahmed I. Liquidity, Profitability and the Dividends Payout Policy. World Rev Bus Res 2015; 5: 73–85.
[28] Gunawan FS, Tobing WRL. The Effect of Profitability Liquidity and Investment Opportunities on Dividend Policy. South East Asia J Contemp Bus Econ Law 2018; 15: 189–195.
[29] Sari PK, Handoyo S. the Influence of Profitability, Liquidity, and Debt To the Dividend Payout Ratio in Manufacturing Company (Listed in Indonesian Stock Exchange From 2008-2010). J Siasat Bisnis 2013; 17: 90–100.
[1] UNDANG-UNDANG REPUBLIK INDONESIA, NOMOR 13 TAHUN 2003
[2] Stiglitz JE. of the Miller Theoremn. Am Econ Rev 1969; 59: 784–793.
[3] Myers SC, Majluf NS. Corporate financing and investment decisions when firms have information that investors do not have. J financ econ 1984; 13: 187–221.
[4] Vasiliou D, Eriotis N, Daskalakis N. Testing the pecking order theory: the importance of methodology. Qual Res Financ Mark 2009; 1: 85–96.
[5] Abor J. The effect of capital structure on profitability: an empirical analysis of listed firms in Ghana. J Risk Financ 2005; 6: 438–445.
[6] Dawar V. Article Information : Agency Theory, Capital Structure and Firm Performance. Manag Financ 2014; 40: 25.
[7] Atanasova C, Gatev E, Shapiro D. The corporate governance and financing of small-cap firms in Canada. Manag Financ 2016; 42: 244–269.
[8] Isik O, Tasgin UF. Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model. Int J Econ Financ 2017; 9: 66.
[9] Vătavu S. The Impact of Capital Structure on Financial Performance in Romanian Listed Enterprises. Procedia Econ Financ 2015; 32: 1314–1322.
[10] Gill A, Biger N, Tibrewala R. Determinants of Dividend Payout Ratios: Evidence from United States~!2010-01-07~!2010-04-06~!2010-05-12~! Open Bus J 2010; 3: 8–14.
[11] ANALYSIS OF RELATIONSHIPS BETWEEN DETERMINANTS OF CAPITAL STRUCTURE ACROSS INDUSTRIES AT JAKARTA STOCK EXCHANGE Christina 1 ; Johan Halim 2. 99–115.
[12] Kim YH, Rhim JC, Friesner DL. Interrelationships among Capital Structure, Dividends, and Ownership: Evidence from South Korea. Multinatl Bus Rev 2007; 15: 25–42.
[13] Al-malkawi HN. Determinants of Corporate Dividend Policy in Jordan : An Application of the Tobit Model Department of Finance and Banking Faculty of Administrative and Financial Sciences. J Econ Adm Sci 2007; 23: 44–70.
[14] BRIGHAM EF. Brigham, Eugene F._ Houston, Joel F. - Fundamentals of financial management-Cengage Learning (2020).pdf.
[15] Jensen MC. Journal of Social and Personal. J Soc Pers Relatsh 1986; 15: 755–773.
[16] Easterbrook FH. Two Agency-Cost Explanations of Dividends. Am Econ Rev 1984; 74: 650–659.
[17] Chandrarin G, Cahyaningsih DS. Identifikasi Struktur Modal Melalui Profitabilitas, Pertumbuhan Penjualan dan Ukuran Perusahaan. AFRE (Accounting Financ Rev 2018; 1: 36–45.
[18] Gusni G. The Determinants of Dividend Policy: A Study of Financial Industry in Indonesia. J Keuang dan Perbank 2017; 21: 562–574.
[19] Lintner J. of Economics PRICES AND THE SUPPLY OF CAPITAL TO CORPORATIONS. Rev Econ Stat 1962; 44: 243–269.
[20] Gordon MJ. Optimal Investment and Financing Policy. J Finance 1963; 18: 264.
[21] Sudipto Bhattacharya. and Imperfect policy , in the hand " fallacy " the bird. 1979; 10: 259–270.
[22] Ahmed Sheikh N, Wang Z. Determinants of capital structure: An empirical study of firms in manufacturing industry of Pakistan. Manag Financ 2011; 37: 117–133.
[23] Chukwunweike V. The Impact of Liquidity on Profitability of Some Selected Enterprises: The Financial Statement Analysis (FSA) Approach. Res J Financ Account www.iiste.org ISSN 2014; 5: 81–90.
[24] Eljelly AMA. Liquidity – profitability tradeoff: An empirical investigation in an emerging market. Int J Commer Manag 2004; 14: 48–61.
[25] Naim S. Al-Qadi. The Relationship Between Liquidity and Profitability - An Empirical Study on the ISE100 Manufacturing Sector. J Financ Account • April 2018 2018; 9: 153–157.
[26] Hidayat MS, Purwani HD, Soetjanto JR. The Influence of Liquidity on Dividend Policy ( Study in Manufacturing Company Sector of Consumer Goods Sub Sector Food and Beverage Listed on the Indonesian Stock Exchange in 2010-2014 ). Int J Innov Sci Res Technol 2018; 3: 422–427.
[27] Ahmed I. Liquidity, Profitability and the Dividends Payout Policy. World Rev Bus Res 2015; 5: 73–85.
[28] Gunawan FS, Tobing WRL. The Effect of Profitability Liquidity and Investment Opportunities on Dividend Policy. South East Asia J Contemp Bus Econ Law 2018; 15: 189–195.
[29] Sari PK, Handoyo S. the Influence of Profitability, Liquidity, and Debt To the Dividend Payout Ratio in Manufacturing Company (Listed in Indonesian Stock Exchange From 2008-2010). J Siasat Bisnis 2013; 17: 90–100.
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Published
2021-07-31
How to Cite
Hervina, I. S. (2021). Effect Debt Policy On Profitability, And Dividend: (Studies On Indonesia State Enterprises). E-BISNIS: JURNAL ILMIAH EKONOMI DAN BISNIS, 14(1), 183–190. https://doi.org/10.51903/e-bisnis.v14i1.848
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