The role of profitability in moderating the influence of capital structure on dividen policy
(1) Universitas Trisakti
(2) Universitas Trisakti
(*) Corresponding Author
Abstract
This research aims to analyze profitability in moderating the influence of capital structure on dividend policy. The research method uses quantitative methods with the object of research was conducted at Consumer Non-Cyclicals Sector companies listed on the Indonesia Stock Exchange (IDX) with a time period of 2019-2023. Sampling using purposive sampling with a total observation of 155 samples and using secondary data derived from the company's annual financial statements. The data analysis method uses panel data regression with Eviews tools. The results showed that capital structure through debt to assets ratio has a significant negative effect on dividend policy, while debt to equity ratio and asset structure have a significant positive effect on dividend policy. The profitability proxied by return on assets has a significant positive effect on dividend policy. Profitability is also able to significantly moderate (weaken) the effect of capital structure on dividend policy. This research is expected to provide information for investors in making investment decisions by paying attention to the company's healthy capital structure, high profitability level, and consistent implementation of dividend policies. Recommendations for future researchers can add other variables such as liquidity ratios, conduct research on different objects or increase the research time period.
Keywords
Full Text:
PDFReferences
Abdullah, H. (2021). Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms. Eurasian Journal of Management & Social Sciences, 2(3). https://doi.org/10.23918/ejmss.v2i3p15
Abdurrozaq, S. B., Leon, F. M., Widyaty, S. R., Sari, W. R., Alam, M. D. M., & Pratama, P. (2023). Corporate Governance and Dividend Policy in Indonesian Manufacturing Companies. Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022), 657–665. https://doi.org/10.2991/978-94-6463-350-4_65
Akpadaka, O. S., Farouk, M. A., & Dang, Y. D. (2024). Moderating Effect of Profitability on the Relationship between Capital Structure and Dividend Policy. International Journal of Financial Studies, 12, 1–22. https://doi.org/10.13140/RG.2.2.16910.98886
Alshakhanbeh, M., Pitchay, A. A., Md Mia, & Nairoukh, R. (2024). Determinants of Dividend Policy : The Roles of Liquidity and Leverage in Jordan ’ s Public Firms. International
Journal of Academic Research in Accounting, Finance, and Management Sciences, 14(4), 674–693. https://doi.org/10.6007/IJARAFMS/v14-i4/23484
Ananta, S. D., Musthofa, Y. A., & Leon, F. M. (2023). Factors Affecting Dividend Policy in Indonesian Companies. IRJEMS - International Journal of Economics and Management Tudies, 2(2), 364–374. https://doi.org/10.56472/25835238/IRJEMS- V2I2P139
Arshad, N., Waseem, F., & Abbas, S. F. (2022). Factors Affecting Dividend Payout Ratio of Dividend Paying Firms Listed on KSE-100 Index. IRASD Journal of Management, 4(2), 164–183. https://doi.org/10.52131/jom.2022.0402.0071
Benyadi, F. C., Hajanirina, A., & Reyes, M. A. (2022). Dividend policy of the Jakarta Stock Exchange listed manufacturing company and the underlying factors. JAAF (Journal of Applied Accounting and Finance), 6(1), 61.
https://doi.org/10.33021/jaaf.v6i1.3615
Edokpa, S. I., Farouk, M. A., Uyagi, B. D., & David, U. B. (2024). Capital Structure and Dividend Payout of Quoted Agriculture Firms in Nigeria: Moderating Effect of Financial Performance. International Journal of Management and Economics Invention,
(08). https://doi.org/10.47191/ijmei/v10i8.06
Erfandi, E., Murdianingsih, D., Indriani, Y. P., & Rosyadi, N. (2024). Likuiditas, Leverage dan Pertumbuhan Perusahaan Pada Kebijakan Dividen. Solusi : Jurnal Ilmiah Bidang Ilmu Ekonomi, 22(3), 334–350. https://doi.org/10.26623/slsi.v22i3.9465
Fitriyah, Nadhiroh, U., & Restuningdiah, N. (2024). The Role of Financial Performance in Mediating Capital Structure, Ownership Structure on Dividend Policy. MEC-J (Management and Economics Journal), 8(2), 113–132. https://doi.org/10.18860/mec-j.v8i2.27085
Heba, A.-G., Ahmed, S., & Rabab, A. (2021). Conventional Determinants of Corporate Payout Policies in the Egyptian Stock Market. American Journal of Industrial and Business Management, 11(11), 1089–1112. https://doi.org/10.4236/ajibm.2021.1111066
Hossain, T., Khalifa, M. M., & Ahmmed, R. (2023). Determinants of the dividend payout policy of multinational companies in Bangladesh: Evidence from Dhaka stock exchange. Financial Risk and Management Reviews, 9(1), 1–10. https://doi.org/10.18488/89.v9i1.3454
Indrati, M., & Amelia, K. (2022). The Effect of Profitability, Liquidity, Leverage and Company Size on the Company’s Dividend Policy. Budapest International Research and Critics Institute-Journal, 5(3), 21787–21799. https://doi.org/10.33258/birci.v5i3.6191
Indrayani, L., & Wentan, I. K. (2024). The Role of Dividends in Moderating the Structure and Growth of Opportunity Assets on Capital Structure. Jurnal Manajemen Dan Perbankan (JUMPA), 11(2), 63–74. https://doi.org/10.55963/jumpa.v11i2.658
Ishaku, A., Muktar, J., & Abdulkarim, H. (2020). Capital Structure and Dividend Policy of Listed Conglomerate Companies in Nigeria: A Panel Data Analysis. International Journal of Research and Scintific Innovation (IJRSI), VII(10), 295–299. www.rsisinternational.org
Januarsi, Y., & Sanusi, F. (2024). Profitability and Dividend Policy: How Does Free Cash Flow Explain this Relationship? Jurnal Siasat Bisnis, 28(1), 56–70. https://doi.org/10.20885/jsb.vol28.iss1.art4
Lee, C.-W., Hsu, H.-H., Peng, S.-J., & Nguyen, T. N. H. (2022). Exploring the Determinants of Company’s Dividend Payout Policy in Vietnamese Stock Market. Journal of Applied Finance & Banking, 12(2), 1–25. https://doi.org/10.47260/jafb/1221
Liu, B., & Jia, Y. (2023). Asset Structure and Company Performance. International Journal of Social Sciences and Economic Management, 4(3), 35–43. https://doi.org/10.38007/ijssem.2023.040305
Momany, M., Bataineh, K., & Al-Bataineh, O. (2024). Determinants of UK Companies’ Dividend Policy. Investment Management and Financial Innovations, 21(1), 386–
https://doi.org/10.21511/imfi.21(1).2024.29
Mvita, M. F., Brummer, L. M., & Wolmarans, H. P. (2021). Sectoral Analysis of Capital Structure and Distribution Policies of Companies listed on the JSE. African Journal of Business and Economic Research, 16(4), 53–78. https://doi.org/10.31920/1750- 4562/2021/v16n4a3
Niati, S., & Sartika, D. (2024). Determinants of Capital Structure in Energy Sector Companies Listed On the indonesia Stock Exchange. IJFR - International Journal Of Finance Research, 5(3), 334–349. https://doi.org/10.46254/an11.20210827
Olaoye, C. O., & Olaniyan, N. O. (2022). Dividend Policy and firm Performance of Listed Consumer Goods Companies in Nigeria Stock Exchange Firm Performance and Dividend Policy of Listed Consumer Goods Companies in Nigeria Stock Exchange. In Acta Universitatis Danubius (Vol. 18). https://www.researchgate.net/publication/362016678
Prianda, D., Sari, E. N., & Rambe, M. F. (2022). The Effect Of Current Ratio (CR), Return On Asset (Roa) And Debt To Equity Ratio (Der) On Stock Prices With Dividend Policy As An Intervening Variable. International Journal of Business Economics (IJBE), 3(2), 117–131. https://doi.org/10.59141/jist.v4i9.718
Prsˇa, D., Sˇestanovic´, A., & Ramljak, I. (2022). Factors Influencing Dividend Payout Policy: Evidence From Listed Non-financial Firms of the Zagreb Stock Exchange. Zbornik RRdova Ekonomskog Fakulteta u Rijeci / Proceedings of Rijeka Faculty of Economics, 40(2), 441–457. https://doi.org/10.18045/zbefri.2022.2.441
Pucangan, N. P. D. P., & Wirama, D. G. (2021). The Effect of Profitability, Leverage, and Company Size on Dividend Policy (Study on Companies Listed on the Indonesia Stock Exchange for the 2017-2019 Period). AJHSSR - American Journal of Humanities and Social Sciences Research, 5(5), 498–503. www.ajhssr.com
Susanti, F. D., Yustisia, N., & Winarti, C. E. (2023). Factors Affecting the Dividend Payout Ratio in Pharmaceutical Companies. Management Research Studies Journal, 4(2), 70–80. https://doi.org/10.56174/mrsj.v4i2.531
Tirtamara, A. A. A., & Sri Artini, L. G. (2024). The Effect of Capital Structure On Company Value with Profitability and Dividend Policy as A Mediating Variable. Return : Study of Management, Economic and Bussines, 3(7), 440–454. https://doi.org/10.57096/return.v3i7.247
Yahaya, A., Abdulkadir, J., & Mahmud, S. M. (2023). Capital Structure And Dividend Policy Of Listed Manufacturing Firms In Nigeria. Nigerian Journal of Management Sciences, 24(2a), 62–72. https://nigerianjournalofmanagementsciences.com/wp- content/uploads/2023/08/7.-Capital-Structure-On-Dividend-Policy-Of-Listed-
Manufacturing-Firms.Pdf
DOI: https://doi.org/10.24123/mabis.v24i1.882
Article Metrics
Abstract view : 57 timesPDF - 10 times
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 Muhammad Rida Abas

This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License. ISSN: 1412-3789. e-ISSN: 2477-1783.
![]() | ![]() | ![]() | |
![]() | ![]() | ![]() | ![]() |