Research Article
The Effect of Institutional Ownership, Free Cash Flow (FCF), and Profitability on Dividend Policy on Registered Basic and Chemical Manufacturing Companies on the Indonesia Stock Exchange
@INPROCEEDINGS{10.4108/eai.5-10-2022.2325890, author={Irsutami Irsutami and Dewi Fortuna}, title={The Effect of Institutional Ownership, Free Cash Flow (FCF), and Profitability on Dividend Policy on Registered Basic and Chemical Manufacturing Companies on the Indonesia Stock Exchange}, proceedings={Proceedings of the 4th International Conference on Applied Economics and Social Science, ICAESS 2022, 5 October 2022, Batam, Riau Islands, Indonesia}, publisher={EAI}, proceedings_a={ICAESS}, year={2023}, month={1}, keywords={dividend policy institutional ownership free cash flow profitability}, doi={10.4108/eai.5-10-2022.2325890} }- Irsutami Irsutami
Dewi Fortuna
Year: 2023
The Effect of Institutional Ownership, Free Cash Flow (FCF), and Profitability on Dividend Policy on Registered Basic and Chemical Manufacturing Companies on the Indonesia Stock Exchange
ICAESS
EAI
DOI: 10.4108/eai.5-10-2022.2325890
Abstract
This study aims to analyze and examine the effect of institutional ownership, free cash flow (FCF), and profitability on dividend policy in manufacturing companies in the basic and chemical sub-sector listed on the Indonesia Stock Exchange (IDX) for the period 2017 – 2020. The research was conducted using a descriptive quantitative approach by taking data from the company's annual report. This study has a sample of 64 data with a total of 16 manufacturing companies in the basic and chemical industry sub-sectors that meet the research criteria within 4 years. The data analysis technique was carried out using the classical assumption test, while the hypothesis testing used multiple linear regression analysis with the help of SPSS 25.0. The results of the analysis show that institutional ownership partially has no effect on dividend policy, free cash flow (FCF) has no effect on dividend policy, while profitability variables affect dividend policy.