The Role of Profitability Mediated the Influence of Investment Decisions on Dividend Policy

  • Putu Ayu Nirmala Kamiana Putri Faculty of Economics and Business, Udayana University, Bali, Indonesia
  • Ida Bagus Anom Purbawangsa Faculty of Economics and Business, Udayana University, Bali, Indonesia
Keywords: Profitability, Dividend Policy, Investment Decisions

Abstract

The company basically proposed to be achieved to maintain its survival in fierce business competition. The purpose can be interpreted when the company has successfully achieved what is desired, both short term and long term. Getting maximum profit is the main goal of a company while providing prosperity for company owners and shareholders and maximizing the value of the company is its long-term goal. This research was conducted at the Manufacturing Industrial Company on the Indonesia Stock Exchange for the period of 2016 - 2015. The total population taken was 35 companies using the census method. Based on the analysis it was found that the Investment Decision had a significant positive effect on profitability (DPR). Investment Decisions have a significant positive effect on Dividend Policy. Profitability has a significant positive effect on Dividend Policy. Profitability is able to mediate the effect of Investment Decisions on Dividend Policy in the Manufacturing Industry Sector shares in the Indonesia Stock Exchange for the period of 2017 - 2018. The research implications emphasize the tangible benefits of the results of this study for interested parties, especially for investors who are planning to invest in the capital market. Through the results of this study, companies should be able to further optimize the performance of their companies in order to increase profitability, so the company is able to share company profits with investors in the form of dividends. Companies that have a stable return and dividend policy will increase the value of the company. Evidenced by the results of research obtained and exposure to the relationship between variables that generally have a positive and significant effect.

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Published
2019-11-10
Section
Articles