The Influence of Size of Firm and Leverage Toward Dividend Payout Policy with The Type of Companies as Controlling Variable

Abstract

The study is entitle “The Influence of Size of Firm and Leverage Toward Dividend Payout Policy with The Type of Companies as Controlling Variable”. The purposes of this study were: first to determine the influence of size of firm and leverage towards dividend payout policy, Second to determine that type of companies impact to the result of size of firm and leverage toward dividend payout policy. The hypothesis purposed in this study were: first is size of firm has significant and positive effect on the dividend payout policy, Second is leverage has significant and negative effect on the dividend payout policy, third is type of company as controlling variable the relationship between size of firm and leverage towards dividend payout policy. Based on the results of the analysis and discussion, it can be concluded that size of firm has significant and positive effect and leverage has significant and negative effect on the dividend payout policy and type of companies do not act as controlling variable on the relationship between size of firm and leverage towards dividend payout policy. The implications of this study are the management of manufacturing and non manufacturing companies listed on Indonesia Stock Exchange needs to consider variable that affect dividend payout policy namely size of firm Moreover managers should minimize be amount of debt financing because leverage has negative influence on dividend payout policy.