The Effect of Liquidity, Investment Opportunity Set, Free Cash Flow, and State-Owned Enterprise on the Dividend Policy of Bank Listed in the Indonesia Stock Exchange

Abstract

The purpose of this study is to know the effect of liquidity, investment opportunity set, free cash flow, and state-owned enterprise on the dividend policy of bank companies listed on the Indonesia Stock Exchange (IDX) in 2011-2021. This study uses a purposive sampling technique to determine the research sample. The number of companies selected by the predetermined sample criteria is 8 companies from 46 companies listed in the IDX bank sector. In this study, an analytical test was conducted using descriptive statistics, classical assumption test, multiple linear regression test, t-test, and F-test. The result of this study showed that free cash flow gives a positive and significant influence on the dividend policy, while dividends on state-owned enterprise banks are fewer than on private banks. While liquidity and investment opportunity sets don't significantly influence the dividend policy.