Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia

Research Article

Relevance of Free Cash Flow, Profitsability, Liquidity, Leverage, Firm Size, and Price Earnings Ratio to Dividend Policy

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  • @INPROCEEDINGS{10.4108/eai.10-8-2022.2320897,
        author={Bayu  Wijayantini and Mohamad Rivaldi Darmawan and Alfi  Arif},
        title={Relevance of Free Cash Flow, Profitsability, Liquidity, Leverage, Firm Size, and Price Earnings Ratio to Dividend Policy},
        proceedings={Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2022},
        month={8},
        keywords={free cash flow return on equity current ratio debt to equity ratio firm size price earning ratio dividend payout ratio},
        doi={10.4108/eai.10-8-2022.2320897}
    }
    
  • Bayu Wijayantini
    Mohamad Rivaldi Darmawan
    Alfi Arif
    Year: 2022
    Relevance of Free Cash Flow, Profitsability, Liquidity, Leverage, Firm Size, and Price Earnings Ratio to Dividend Policy
    ICBAE
    EAI
    DOI: 10.4108/eai.10-8-2022.2320897
Bayu Wijayantini1,*, Mohamad Rivaldi Darmawan1, Alfi Arif1
  • 1: Muhammadiyah Jember University
*Contact email: bayu@unmuhjember.ac.id

Abstract

Changes in the size of dividends are used as a benchmark for good or bad from the company's ability to run its business in the future. The purpose of this study is to analyze the effect of free cash flow (FCF), return on equity (ROE), current ratio (CR), debt to equity ratio (DER), firm size (SIZE) and price earning ratio (PER) on dividend payout ratio (DPR) at HIMBARA member banks for the 2015-2021 period. This study uses 60 observational data from 4 companies, namely BBRI, BBNI, BBTN and BMRI. From the results of data processing, it can be concluded that free cash flow (FCF), return on equity (ROE), current ratio (CR), debt to equity ratio (DER), firm size (SIZE) and price earning ratio (PER) have a positive effect on dividend payout ratio (DPR).