Predicting Dividend Policy with Liquidity as A Moderating Variable

Abstract

he study aims to evaluate the effect of profitability, capital structure, and managerial ownership on dividend policy by considering moderation variables, namely liquidity. This study involves pre-audited financial statements of companies that have been listed on the LQ45 Index on the IDX, or Indonesia Stock Exchange, during the 2020–2022 time frame. The research approach applied is basic research with a quantitative approach. Samples were selected through purposeful sampling, resulting in 51 samples from 17 companies meeting the criteria for three consecutive years. Data analysis was performed using SmartPLS 4, involving multicollinearity tests, R-square tests, path coefficient tests, and hypothesis tests. The findings of this study indicate that profitability, capital structure, and managerial ownership, respectively, have no significant influence on dividend policy. In addition, liquidity also does not affect the relationship between profitability, capital structure, and managerial ownership on dividend policy.