Abstract

Abctract. The purpose of the study, The research objective was to determine the difference in dividend policy between companies that have high growth potential with companies that have low growth potential. Research is a quantitative study. Mean difference test is preceded by Common Factor Analysis to analyze which factors in the Investment Opportunity Set can represent the growth ratio of the company so that it can be used to separate companies with high and low growth potential. Furthermore, the analysis is carried out with a regression model to determine the difference in dividend policy on the growth potential of different companies. The results showed that dividend policy proved to be significantly different in policy between companies that grew high and low and followed the pecking order theory. Keywords. Dividen Policy, Growth Potential of the Company. JEL. F43, N10, O10.

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