Factors of Dividend Payout Ratio and Influence on Company Value (Case Study on LQ 45 Companies in Indonesia Stock Exchange on the 2011-2015)

Abstract

The purpose of this study was to examine the effect of return on equity on the dividend payout ratio, the effect of the company's growth on the dividend payout ratio, the effect of free cash flow on the dividend payout ratio, the effect of leverage on the dividend payout ratio, and the effect of the dividend payout ratio on firm value. The model used in data analysis is a simple multiple regression model because the measurement of the dependent and independent variables in this study is in the form of numbers with a ratio scale measurement instrument and independent variables used by more than one. The results of this study indicate that the return on equity has a significant effect on the dividend payout ratio, growth has no significant effect on the dividend payout ratio, free cash flow has a significant effect on dividend payout ratio, leverage has no significant effect on the dividend payout ratio, and dividend payout ratio has a significant effect on the value of the company.