The Effect of Profitability, Growth, and Solvency on Dividend Policy
DOI:
https://doi.org/10.33830/jfba.v6i2.13813.2026Keywords:
Dividend Policy, Earnings per Share, Asset Growth, Debt to Equity Ratio, Panel Data RegressionAbstract
Dividend policy represents a crucial management decision that reflects management’s ability to balance profitability, growth, and financial stability. Aims to analyze the influence of Earnings per Share, Asset Growth, and Debt-to-Equity Ratio on Dividend Policy in agricultural food product manufacturing companies listed on the Indonesia Stock Exchange, based on dividend distribution criteria. Therefore, the sample consists of companies that distributed dividends for six consecutive years (2018 to 2023). Based on quantitative research techniques using signaling theory and the “bird-in-the-hand” principle, which explain the relationship between company performance indicators and dividend decisions as signals of management credibility and financial soundness. This study employs a descriptive-associative approach using secondary data derived from financial statements. Samples were selected through homogeneous purposive sampling and were analyzed using multiple linear regression via Eviews. The findings reveal that Earnings per Share and the Debt-to-Equity Ratio have a significant positive effect on dividend policy. Asset Growth, however, has a negative effect on dividend policy. Understanding the contributions of these three factors helps management formulate dividend policies that are not only responsive to financial conditions but also strategic in maintaining corporate reputation and long-term investment attractiveness
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