Internal Factors Affecting Dividend Policy in Energy Sector Companies Listed on the Indonesian Stock Exchange

Ronaldo Ronaldo; Ika Pratiwi Simbolon

doi:10.55927/jambak.v4i2.296

Authors

Ronaldo Ronaldo Universitas Bunda Mulia
Ika Pratiwi Simbolon Universitas Bunda Mulia

DOI:

https://doi.org/10.55927/jambak.v4i2.296

Keywords:

Dividend Policy, Dividends, Energy Sector

Abstract

This study aims to understand the extent to which the contribution of factors, namely profitability, liquidity, leverage, firm size, free cash flow, growth and investment opportunities, affect dividend policy in the energy sector companies period 2020-2024. 30 energy sector companies listed on the Indonesia Stock Exchange (IDX) were accumulated using purposive sampling. Random effect model (REM) is applied to determine the factors that affect the dividend policy. The result showed that companies which are matured and profitable while maintaining strong liquidity, cash flow, and less dependent on debt can affect its dividend policy significantly. However, growth and investment opportunities unable to show its effect on dividend policy. Therefore, this study provides different perspective on dividend policy in the energy sector companies listed on Indonesia Stock Exchange (IDX).

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