Research Paper
Year: 2019 | Month: November | Volume: 6 | Issue: 11 | Pages: 450-460
Analysis of Financial Performance Effect on Dividend Payout Ratio Members of Holding Mining Industry with Capital Expenditure as Moderating Variable
Hanifah Fathin Nasution, Isfenti Sadalia, Khaira Amalia Fachrudin
Department of Management Science, Universitas Sumatera Utara, Indonesia
Corresponding Author: Hanifah Fathin Nasution
ABSTRACT
The purpose of this study is to analyze the effect of financial performance on dividend payout ratio (DPR) Holding Mining Industry (HIP), with capital expenditure (CAPEX) as a moderating variable. This research was conducted only for members who are publicly listed companies and have A series dwiwarna shares, namely PT Bukit Asam (PTBA), PT Timah Tbk. (TINS), PT Aneka Tambang Tbk (ANTM). Analysis conducted by panel regression, with alpha 5%, shows that financial performance simultaneously affects the DPR by 39.86%, the remaining 60.14% is influenced by other factors. In terms of profitability, ROE and no significant negative effect on the DPR. In terms of liquidity, the cash ratio has an insignificant positive effect and the negative current ratio is not significant to the DPR. In terms of leverage, DAR has a significant positive effect on the DPR, while DER has a significant positive effect on the DPR. Furthermore, with the moderation test, it was concluded that CAPEX significantly weakened the effect of financial performance on (Cash ratio, current ratio, and DAR) on the DPR. In this case, HIP members should manage their debt and equity, and capital expenditure, because DAR will increase the DPR and Capex will weaken the DPR, even though investments with good returns will increase the income of HIP members.
Key words: Financial Performance, Dividend Payout Ratio, Capital Expenditure
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