The Role of Collateralizable Asset, Profitability and Operating Cash Flow on Dividend Policy: A Study on ASEAN Non-Financial Companies

Arie Akbar (1) , Moch Doddy Ariefianto (2)
(1) School of Accounting, Bina Nusantara University, Jakarta, Indonesia , Indonesia
(2) School of Accounting, Master Accounting Bina Nusantara University, Jakarta, Indonesia , Indonesia

Abstract

Purpose of the study: This study examines the role of collateralizable assets, profitability, and operating cash flow on dividend policy.


Methodology: In this study, researchers used data obtained from the OSIRIS database, which processes data from each exchange in the country studied and compiled a panel data set of ASEAN non-financial companies.


Main Findings: The results of this study found that profitability and operating cash flow significantly affect dividend policy, namely, securing assets that can be guaranteed. Individual collateral assets do not affect dividend policy. Meanwhile, using the proxy return on assets, profitability has a positive effect on dividend policy, and operating cash flow also significantly influences dividend policy, but the impact is negative.


Research limitations/implications: With this research can maintain its profitability value so that it can take future dividend policies that benefit investors or companies themselves.


Novelty/Originality of this study: This study focuses on collateralizable assets, profitability, and cash flow operations. This has been done because we are very interested in the phenomenon. After all, as we know, this collateral asset is an asset that can be pledged, and so we want to see if a dividend policy can cover this collateral. Because it must be high collateral, it must be able to signal to the company that the company has a high asset value, making it management's responsibility not to be afraid to pay dividends. policies.

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Authors

Arie Akbar
arie.akbar@binus.ac.id (Primary Contact)
Moch Doddy Ariefianto
Akbar, A., & Ariefianto, M. D. (2023). The Role of Collateralizable Asset, Profitability and Operating Cash Flow on Dividend Policy: A Study on ASEAN Non-Financial Companies. Innovation Journal of Social Sciences and Economic Review, 5(1), 19–28. https://doi.org/10.36923/ijsser.v5i1.183

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