Determinants of Dividend Policy: Examining the Roles of Liquidity and Leverage in Indonesian Manufacturing Companies

Abstract

This study examines how liquidity and leverage influence the dividend policy of manufacturing companies listed on the Indonesia Stock Exchange between 2017 and 2019. Using an associative research strategy, the study employs panel data regression analysis in Eviews 10. The population comprises manufacturing companies, and a purposive sampling method was utilized to select a sample of 35 companies. The findings of the study are as follows: 1) Liquidity does not have an impact on dividend policy. 2) Leverage negatively affects dividend policy. 3) Investment opportunities do not influence dividend policy. 4) Company size does not affect dividend policy. This study examines current conditions in the Indonesian capital market and relies on secondary data from audited financial statements of companies.