| dc.description.abstract | This study aims to determine the assessment of financial performance and the effect
on dividend policy of banking companies listed on the Indonesia Stock Exchange in
the period of 2014–2017. The assessment of the company’s financial performance is
important. Results of the assessment will be consideration of financial performance
for investors, one of them to predict the dividend policy. The prediction results will
influence investors in making investment decisions. This study employs a quantitative
approach.
The
assessment
of
financial
performance
is
measured
using
variables
of
leverage,
profitability
and
profit
growth.
They
were
analyzed
using
the
multiple
linear
regression
method.
At
the
0.05 significance
level,
the
results
of
this
study
showed
that
the
leverage
has
a negative
and
significant
effect
on
dividend
policy.
Meanwhile,
profitability
and
profit
growth
have
no
effect
on
dividend
policy.
In
order
to
explain
the
influence
between
variables,
the
research
is
based
on
the
theories
underlying
the
dividend
policy,
namely
the
theory
of
residual
dividends
and
smoothing
theory.
The
results
of
this
study
support
the
residual
dividend
theory,
that
one
of
the
dividend
policies
is
determined
by
the
company
by
considering
the
target
capital
structure
and
then
distributing
dividends
with
only
the
remaining
profit. | en_US |
