The Influence of Cash Flow, Leverage, and Market to Book Ratio on the Level of Dividend Payment; Study at Consumer Goods Companies Listed in Indonesia Stock Exchange (IDX) 2015-2017

Abstract

The purpose of this study is to obtain the empirical evidence about the influence of cash flow, leverage, and market to book ratio to the level of dividend payments. The population used in this study is the consumer goods  companies listed in Indonesia Stock Exchange from 2015 to 2017. The results show that Cash Flow, leverage, and market to book ratio simultaneously influence the level of dividend payment of the consumer goods companies listed in the IDX and while the market to book ratio is partially influence the level of dividend payments to the consumer goods companies listed in the IDX. There fore the bigger of the market to book ratio the bigger the dividend must be payed by the companies of the consumer goods listed in IDX.

Keywords: cash flow, leverage, market to book ratio, dividends

DOI: 10.7176/RJFA/10-2-09