Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)

Determining Factors of Dividend Premium For Manufacturing Company on IDX

Authors
Levilia Diana1, Ignatius Roni Setyawan1, *
1Faculty of Economics & Business, Universitas Tarumanagara, Jakarta 11470, Indonesia
*Corresponding author. Email: ign.s@fe.untar.ac.id
Corresponding Author
Ignatius Roni Setyawan
Available Online 11 May 2022.
DOI
10.2991/aebmr.k.220501.017How to use a DOI?
Keywords
Catering Theory of Dividend; Dividend Premium; Liquidity; Profitability; Company Growth
Abstract

One of important factors in determining the dividend distribution is how to measure dividend premium. Coming from Baker and Wurgler (1) & (2), it has been declared the catering theory dividend which states new perspectives for management which should take more attention regarding the demand of investors about dividend. The investor’s demand is not only about the monetary number of dividend but also the dividend level will meet their demand. In order to fulfill that investor needs, the management must set the dividend premium. Thus, the purpose of this study was to examine the effect of liquidity, profitability, and company growth on the dividend premium in manufacturing companies listed on the IDX. By using panel data regression from time period from 2015-2018, we find the profitability, leverage, and retention ratio have a positive significant effect on dividend premium while liquidity and company growth (PEG) have no significant effect on dividend premium. Hence from our result, we can make an implication of the quiet validity from catering theory of dividend in IDX and the firm should set properly profitability, leverage and retention ratio in order to get positive dividend premium which will bring good response from investors in the capital market.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article distributed under the CC BY-NC 4.0 license.

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Volume Title
Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
11 May 2022
ISBN
978-94-6239-575-6
ISSN
2352-5428
DOI
10.2991/aebmr.k.220501.017How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article distributed under the CC BY-NC 4.0 license.

Cite this article

TY  - CONF
AU  - Levilia Diana
AU  - Ignatius Roni Setyawan
PY  - 2022
DA  - 2022/05/11
TI  - Determining Factors of Dividend Premium For Manufacturing Company on IDX
BT  - Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)
PB  - Atlantis Press
SP  - 103
EP  - 108
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220501.017
DO  - 10.2991/aebmr.k.220501.017
ID  - Diana2022
ER  -