The Effect of Financial Performance Measured with Rentability Ratio Against Dividend Payout Ratio (Empirical Study on Manufacturing Companies Group Listed on BEI)

The Effect of Financial Performance Measured With Rentability Ratio Against Dividend Payout Ratio (Empirical Study on Manufacturing Companies group listed on BEI)

Imas Della Fauzi1, Rukmini2 STIE AAS, Central Java, Indonesia Email: [email protected]

Abstract: This study aims to examine whether there is a significant effect of the company's financial performance as measured by the ratio of profitability with Return on Assets (ROA), Return On Equity (ROE), Return On Investment (ROI) and Net Profit Margin (NPM) to Dividend Payout Ratio (DPR). The data collected is obtained from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange period 2013-2015. The analysis used to know how big the influence of ROA, ROE, ROI NPM to DPR company, writer do statistical analysis done by using descriptive analysis, doubled linear regression, correlation coefficient and coefficient of determination. While testing the hypothesis using F test for simultaneous test and t test partially, using SPSS 16. Based on the results of data processing, obtained regression equation Y = 31.225 + 1.209 X₁ - 0.106 X₂ + 0.505 X₃ - 0.708 X₄ + ε, analysis results Statistics simultaneously obtained the value of determination coefficient of 28.3%. While the rest equal to 71.7% influenced by other factors. Based on hypothesis test by using significant level α = 0,05 result of F test, show that together regression model can be used to explain the relation between Return on Asset, Return On Equity, Return On Investment and Net Profit Margin to Dividend Payout Ratio.

Keywords: Return on Assets, Return on Equity, Return On Investment and Net Profit Margin, Dividend Payout Ratio conditions, and environmental conditions 1. Introduction of the company is located. The required information is a In Indonesia, every company is certainly company performance report that is not spared from global competition that reflected in the financial statements. To can make an opportunity or can be a threat measure the financial performance of a to the company if not anticipate before. company can use financial ratios such as Included are manufacturing companies liquidity ratios, activity ratios, listed on the BEI. In this case the capital profitability/profitability ratios, solvency market has an important role as an ratios and market ratios. effective means to raise funds even more The proportion of dividends paid to for companies that need capital for long- shareholders depends on the ability of the term financing investment. Before company to generate profits and the form investing, investors should consider the of dividend policy applied by the company condition of the company that can be seen concerned. Stocks with large dividends are from the performance of manufacturing one of the most attractive factors for companies listed on the Indonesia Stock investors that can raise stock prices. In line Exchange (BEI), exchange rate with the increasing dividend given, it is fluctuations, transaction volume, stock expected that the level of financial performance measured by profitability or

International Journal of Economics, Business and Accounting Research (IJEBAR) Page 19

International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-2, Issue-1, 2018 (IJEBAR) ISSN: 2614-1280, https://jurnal.stie-aas.ac.id/index.php/IJEBAR profitability ratios grows higher in the over its operational activities in order to ability to generate profits. Accordingly, in compete with other companies. this study the author took the title: "The Financial performance analysis is a Effect of Financial Performance Measured critical review process to review data, With Rentability Ratio Against Dividend Payout Ratio" (Empirical Study on calculate, measure, interpret, and Manufacturing Companies group listed on provide solutions to the company's BEI). finances in a certain period.

2) Analisis Kinerja Keuangan 2. Theoretical Review Financial performance can be assessed

with multiple analytical tools. Based on 2.1 Underlying Theory the technique, financial analysis can be a. Financial performance differentiated into (Jumingan, 2006: Performance derived from the word 242) performance, performance is expressed as a) Comparative Analysis of Financial achievements achieved by the company Statements, is an analytical within a certain period that reflects the technique by comparing the financial level of health of the company. statements of two or more periods by Understanding Financial Performance by showing changes, both in the number Fahmi (2011: 2), is "Financial (absolute) and in percentage performance is an analysis conducted to (relative). see how far a company has implemented b) Analysis of Trends (tendency by using the rules of financial position), is an analysis technique to implementation properly and correctly. determine whether the financial 1) Performance Measurement condition tendency shows an The company's financial performance is increase or decrease. closely related to the measurement and c) Percentage Analysis of Component performance appraisal. Performance (common size), is an analytical measurement (performance technique to determine the measurement) is the qualification and percentage of investment in each efficiency and effectiveness of the asset to the total or total assets and company in business operations during debt. the accounting period. d) Analysis of Sources and Use of The performance assessment according Working Capital, an analytical to Sri mindarti (2006: 34) is the technique to determine the amount determination of operational of sources and use of working capital effectiveness, organization, and through two time periods are employees based on the targets, compared. standards and criteria that have been e) Analysis of Sources and Use of previously set periodically. Cash, is an analytical technique to Performance measurement is used by determine the condition of cash the company to make improvements

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accompanied by the cause of cash financial performance of the competing changes in a certain period of time. firm. f) Financial Ratio Analysis, is a 1) Types of Financial Statements financial analysis technique to a) Balance Sheet determine the relationship between A balance sheet is a financial certain posts in the balance sheet and statement that provides information income statement either individually about a company's financial position or simultaneously. at a given moment. To be able to g) Gross Profit Change Analysis, an describe the company's financial analytical technique to determine the position at a given moment, the position of profit and the causes of balance sheet has three elements of changes in earnings. the financial statements of assets, h) Break Even analysis, an analysis liabilities, and equity. technique to determine the level of b) Statements of Profit and Loss sales to be achieved so that The income statement has two companies do not experience losses. elements in generating profit during the period of performance that is: 3) Financial Performance Assessment (Dwi Prastowo and Rifka Julianty, For investors, information about the 2002: 20). Income is a form of company's financial performance can be increase in economic benefits in the used to see if they will keep their form of income or increase in assets investment in the company or look for or decrease in liabilities. For other alternatives. If the company's example interest income, rent, performance is good then the business service income. value will be high. With high business c) Expense is the decrease of economic value makes investors glance at the benefits in the outflow of assets or company to invest its capital so that liabilities. For example: salary and there will be an increase in stock prices. wages, depreciation, cost of goods Or it can be said that stock price is a sold. function of company value. 2) Statements of changes in equity b. Financial statements According to IAI (2007: 1.12), the The financial statements are the end result Company must present the statement of of the accounting process prepared in changes in equity as a major component accordance with generally accepted of the financial statements, showing the accounting principles. The financial related period's profit or loss, the statements are the responsibilities that accumulated balance of profit or loss at have been entrusted to him. The financial the beginning and end of the period and condition and results of the operations of its amendments. the company as reflected in the financial statements may reflect the performance or

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3) Statement of cash flows c) The financial statements indicate According to IAI (2007: 2.2), that cash what management has done, or flow is the inflow and outflow of cash management's liability for the or cash equivalents. resources entrusted to it. Users who According to IAI (2007: 1.13) records want to assess what has been done or on financial statements should be accountable. Management does so in presented systematically. Each item in order to meet their economic the balance sheet, income statement and decisions. cash flow statement must relate to the 5) Limitations of Financial Statements information contained in the notes to According Munawir (2004: 6), states the financial statements. Notes to that the financial statements are financial statements disclose: historical and comprehensive and as a information on the basis of the progress report. The financial preparation of financial statements and statements consist of data which results accounting policies that are selected and from a combination of recorded facts, applied to the events and transactions principles, and habits in accounting and that are important, the information personal opinion. required in the statement of financial Limitations of financial statements accounting standards but not presented according to Harahap (2004: 17-18), in the balance sheet, income statement, are: cash flow statements and reports a) The financial statements are changes in equity, additional historical, which is a report on past information not presented in the events. Hence the financial financial statements but required in a statements cannot be considered as fair presentation. the only source of information in the 4) Objectives of Financial Statements economic decision-making process, a) Provide information regarding the let alone to forecast the future of the financial position, performance and value of the company today. changes in the financial position of a b) The financial statements are general company that is beneficial to a large and do not want to meet the needs of number of users in decision making. certain parties or special parties as b) Financial statements prepared for the buyers. this purpose meet the common needs c) The process of preparing the of most users. However, the financial statements does not escape financial statements do not provide the use of estimates and various all the information the user needs in considerations. economic decision making as it d) Financial statements prepared by generally describes the financial technical terms and users of financial effects of past activities, and is not statements are assumed to required to provide financial understand the technical language of information. accounting and the nature of the information reported.

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e) The existence of various alternative company. This ratio is influenced by the accounting methods that can be used size of the company's capital, the to cause variations in the greater the capital proportion then the measurement of economic resources better ROE as well. and the level of success between ROE = Net profit after tax x 100% companies. inventory valuation Total Equity methods may use LIFO, FIFO, and Average Similarly depreciation 2) Return on Asset (ROA) method: straight line, declining Return on Assets (ROA) is the ratio balance, Sum of Year Digit and so used to measure the effectiveness of on. companies in generating profits by utilizing the assets they have (Febrianti, c. The notion of Ratio 2014). ROA or ROI is obtained by Ratio is a tool that can be used to explain comparing the net income after tax the relationship between two kinds of (NIAT) to average total assets. The financial data. The ratio describes a greater the profits of the company relationship or balance (mathematical would be the dividend as the income is relationship) between a certain amounts to paid even greater. another amount (Munawir, 2000: 54). The ROE = Net profit after tax x 100% actual ratio is only the tool stated in the Total assets arithmetical terms that can be used to 3) Net Profit Margin (NPM) explain the relationship between two kinds Net Profit Margin (NPM) of financial data (Bambang Riyanto, 2001: menggambarkan besarnya presentase 329). Financial ratios represent keuntungan bersih yang diperoleh information that describes the relationship perusahaan untuk setiap penjualan between the various accounts (accounts) of karena memasukkan semua unsur financial statements that reflect the pendapatan dan biaya. Rasio ini juga financial condition and the results of the bermanfaat untuk mengukur tingkat company's operations. efisiensi total pengeluaran biaya-biaya In this study the authors limit using only a dalam perusahaan. few ratios of the existing profitability NPM = Net income X 100% ratios, among others: Sales 1) Return on Equity (ROE) Return on Equity (ROE) is one way to 4) Return on Investment (ROI) calculate the efficiency of a company Return on Investment (ROI) is a ratio by comparing the profit available to the that measures the ability of the owner of the capital itself with the company with the overall funds amount of own capital that generates invested in the assets used for the the profit. According to Agus Sartono company's operations in an attempt to (2003: 123) ROE is a measure of the generate profits. Mulyadi (2001: 440), ability of a company to obtain profits argued that the ROI is the ratio of available to shareholders of the earnings with the investment used to

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generate profit. The formula for Therefore, companies should calculating ROI is: implement an optimal dividend  ROI = laba X 100% policy with current dividend stability Investasi and future growth of companies by  ROI = Pendapatan x Laba maximizing stock prices. The Investasi Pendapatan dividend policy in this study is proxies by dividend payout ratio In formula 1, for the measurement of profit center performance, the profit to (DPR). be earned by a profit center within a 2) Divident Payout Ratio given time period divided by the Dividends paid can be classified as investment which will be used for the financing cash flow because it is the earnings. Formula 2, both investment cost of obtaining financial resources. and profit are calculated by revenue. The share of the profits distributed to Investments associated with income shareholders is called dividend indicate the level of invocative turnover payout. According to Henry in a given period. The rate of Simamora (2000: 523), suggests that investment turnover shows the the Dividend Payout Ratio is a productivity of investment use in percentage of ordinary share generating revenue. Profit divided by earnings paid in the form of revenue shows profit margin which is dividends. the percentage of earnings that can be DPR = DPS X 100% obtained from every rupiah income. EPS d. Dividend Infor,ation: DPR: Dividend Payout Ratio Dividends are the value of the DPS: Dividen per share company's net income after tax minus EPS: Earnings per share retained earnings retained as reserves 3) Factors affecting dividend policy (Ang, 1997). According to Hanafi Factors influencing dividend policy (2004), dividends are compensation (Ridwan & Inge, 2003: 387), among received by shareholders, in addition to others: capital gains. a) The rule of law 1) Dividend Policy  Regulations concerning net income The dividend policy is the determine that dividends may be distribution of corporate profits to from earnings of past years and investors whose value depends on current year. the policy of the company  Rules concerning actions that harm concerned, which may result in the capital. Protecting creditors by reduced retained earnings for the prohibiting payment of dividends company (Efni, 2013). This dividend from capital. policy is one of the most important b) Liquidity position things in the company because it Retained earnings are usually involves two parties with different invested in the form of assets needed interests, insiders and investors.m

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to run a business. Therefore, if the that is highly dependent on financial company gets a lot of profits it may performance especially seen from the ratio not be able to pay dividends because of profitability. Dividend policy is of its liquidity. In this situation the important information for shareholders to company may decide not to pay see the financial performance of a dividends in cash. company itself. c) Pay the loan If the company obtains a loan to expand the company, then the 2.2 Research Conducted company can repay the loan. d) Loan contract The research conducted by the authors Short-term or long-term loan refers to research conducted by: The first contracts often limit the company's study that is from research Sulhan Faris ability to repay loans. (2012) with the title Analysis Influence of e) Restrictions on prefern shares Financial Ratio and Non-Financial Ratios If the dividend oemegang prefern To Policy Dividend Payout Ratio (Study share has not been paid then the on Manufacturing Companies Listed on dividend payout to ordinary BEI period 2008-2010 ). In this research, shareholders can not be done. Liquidity and Profitability variable have f) The need for funds for investment positive and significant effect to dividend A growing company always needs payout ratio. new funds to invest in profitable The Growth variable shows a projects. In this case management negative and significant influence on the tend to prefer to use retained dividend payout ratio. Firm size variable earnings because the utilization of has positive and not significant effect on retained earnings does not require dividend payout ratio. The insider flotation cost. ownership variable shows the negative and g) Fluctuations in earnings significant influence on the dividend If the company fluctuates in a payout ratio and the instituonal ownership smaller dividend it is done to variable has a negative and insignificant maintain the stability of dividend effect on the dividend payout ratio. The payments. With fluctuating profits second research is Bryan Aristanto (2015) the company also does not use much Factor Analysis Affecting Dividend debt as a source of funding, this is Payout Ratio (Case Study on Manufakur done to reduce the risk of Company Listed on BEI Year 2011-2013). bankruptcy. The result of his research stated that the variable of Insider Ownership and e. Effect of Financial Performance on Debt to Equity Ratio have no significant Dividend Payout Ratio negative effect to Dividend Payout Ratio. The financial performance of the company While Return On Asset and Firm Size is very influential on the dividend payout. have positive significant effect to Dividend This can be seen from the dividend policy Payout Ratio. Insider Ownership variables,

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Debt to Equity Ratio, Return On Assets, H2: Return on Equity has a positive and Firm Size together have a significant effect on Dividend Payout Ratio. influence on Dividend Payout Ratio. c. Effect of Return on Investment on The third study is Nuriyatul Dividend Payout Ratio (DPR) Mashumah (2015) entitled Factors H3: Return On Investment has a Affecting Dividend Payout Ratio In positive effect on Dividend Payout Companies That Enter In List Of Sharia Ratio. Securities. In this research found that d. Effect of NPM on Dividend Payout together regression model can be used to Ratio (DPR) explain the relationship between earnings H4: Net Profit Margin positively affects per share, size, growth, dept to equity Dividend Payout Ratio ratio, return on assets and cash ratio to e. Effect of Return on Equity, Net Profit dividend payout ratio. Partially variable Margin, Return on Investment and earning per share, dept to equity ratio and Return on Assets to Dividend Payout cash ratio have influence and negative Ratio simultaneously. relation to dividend payout ratio. Variable H5: There is a significant influence size and return on assets have no effect on between Return on Equity, Net Profit dividend payout ratio but have a positive Margin, Return on Investment and relationship. While the variable growth has Return on Assets to Dividend Payout no effect and has a negative relationship Ratio simultaneously. with devidend payout ratio. 3. Research Methodology 2.3 Theoretical Framework The systematic framework in this research In this study the population observed is a can be described as follows: group of companies whose shares are listed in Indonesia Stock Exchange (IDX) period 2013-2015. Especially in the manufacturing industry group based on this research, there are 143 companies from 19 industry sectors. Sampling in this research is done by purposive sampling. Figure 2.1 Types and sources of data used in Theoretical Framework this study are secondary data containing annual financial statements both published 2.4 Hypothesis by manufacturing companies listed on the a. Influence of ROA to Dividend Payout Stock Exchange during the period 2013- Ratio (DPR) 2015. The data of this research is obtained H1: Return on Assets has positive effect through Indonesia Stock Exchange (BEI) on Dividend Payout Ratio. website, www.idx.co.id and Indonesian b. The Effect of Return on Equity on Capital Market Directory (ICMD). Other Dividend Payout Ratio (DPR) literature is derived from books, research journals, theses, articles, and news.

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4. Results and Discussion Average (mean) ROI during the 4.1 Description of Research Object observation period of 30.8104 with A manufacturing company is a company standard deviation (SD) of 22.49031 and that processes raw materials to turn into minimum value of 0.08 and the maximum ready-to-market goods. All the processes value of 88.16. that occur in this industry generally Average (mean) NPM during involve a variety of modern equipment. observation period of 13.1562 with Manufacturing companies are currently standard deviation (SD) of 7.37634 and growing very rapidly every year both in minimum value of 2.16 and maximum terms of financial statements and shares value of 32.88. For the average value that have gone public. (mean) of DPR variables during the The business prospects in observation period of 54.0671 with manufacturing also prove to be very standard deviation (SD) of 29.23172 and profitable each year which will attract minimum value of 0.08 and the maximum investors to invest in the company. The value of 145.92. The results show that the object of research used in this study is a standard deviation (SD) value is less than manufacturing company listed on the BEI the average. Similarly, the minimum value from 2013-2015. smaller than the average and the maximum a. Descriptive Statistics of Research value greater than the average indicates Variables that the data of ROA, ROE, ROI, NPM Based on data inputted from ICMD 2015 and DPR variables indicate good results. and Annual Report 2016) it can be It can be seen that the value of ROA calculated the financial ratios used in this in 2013-2015 from the 15 companies that study include ROA, ROE, ROI, NPM. become the sample, the maximum value of Here is a statistical description of each 65.72 is experienced by PT. Multi Bintang variable. Indonesia Tbk in 2013. The lowest ROA Based on the calculation in Table 4.2 value is experienced by PT Holcim there are 15 sample companies from 45 Indonesia Tbk in 2015 with minimum observation data. The ROA, ROE, ROI, value of 1.15. On a large ROE, the NPM and DPR variables during the minimum value of 2.36 is met by PT observation period 2013-2015 show that Holcim Indonesia Tbk in 2015, and the the standard deviation value is smaller than maximum value of 143.53 is experienced the average. by PT Multi Bintang Indonesia Tbk in Where the ROA averageb during the 2014. For the value of ROI, the minimum observation period is 16.1211 with the value of 0.08 is experienced by PT Multi standard deviation (SD) of 11.92167 and Bintang Indonesia Tbk in 2014 and the the minimum value of 1.15 and the value maximum of 88.16 in 2013. The maximum value of 65.72. The mean of minimum value of NPM of 2.16 is covered ROE during the observation period of by PT Holcim Indonesia Tbk in 2015 and 27.2044 with standard deviation (SD) of its maximum value of 32.88 is experienced 27.83963 and the minimum value of 2.36 by PT Multi Bintang Indonesia Tbk in and the maximum value of 143.53. 2013. While in the DPR minimum value of

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0.08 experienced by PT Merck Tbk in To detect the presence or absence of 2013, and its maximum value of 145.92 symptoms of multicollonearity between experienced by PT Multi Bintang independent variables used Variance Indonesia Tbk in 2015. Inflation Factor (VIF) and Tolerance. Table 4.4 4.2 Classical Assumption Testing Multicollonearity Test Results

Results Coefficientsa Model Unstandardiz Standar T Sig. Collinearity From the calculation of the average ed dized Statistics sample of financial ratios for five Coefficients Coeffic ients years, then in this study it is necessary B Std. Beta Toler VIF Error ance to test the classical assumptions in 1 (Co 31.2 9.12 3.42 nsta .001 advance which include: normality test, 25 7 1 nt) X 1.20 1.52 5.8 multicollinearity test, 1 .795 .493 .136 .171 9 1 63 heteroscedasticity test and X - - 4.0 2 .284 -.101 .713 .244 autocorrelation test performed as .106 .371 95 X 2.81 1.0 3 .505 .179 .388 .008 .941 follows: 3 63 X - - 2.3 4 .805 -.179 .384 .434 a) Normality Test .708 .880 02 The following is the result of a. Dependent Variable: Y Source: Secondary data processed, 2017; output of residual normality test of SPSS version 16 independent variables ROA, ROE, ROI and NPM and dependent Based on the test results in table 4.4 variable of DPR. To find out it is above note that the tolerance values of used Kolmogorov-Smirnov Test ROA (X1), ROE (X2), ROI (X3) and using significance level> 0.05. NPM (X4) variables are 0.171, 0.244, Table 4.3 0.941 and 0.434 greater than 0.10. Normality Test Results While the VIF value of the variable, One-Sample Kolmogorov-Smirnov Test Unstandardized ROE (X2), ROI (X3), NPM (X4) i.e Residual N 45 5.863, 4,095, 1.063 and 2.302 smaller Normal Parametersa Mean .0000000 than 10. Thus it can be concluded ROA, Std. Deviation 24.75143296 Most Extreme Absolute .113 ROE, ROI and NPM variables do not Differences Positive .113 occur multicollinierity. Negative -.102 Kolmogorov-Smirnov Z .757 Asymp. Sig. (2-tailed) .616 a. Test distribution is Normal. b) Heteroscedasticity Test Based on the test results in table 4.3 This test aims to test whether the above shows the acquisition of sigma regression model of variance inequality K-S (value α) from Kolmogorov occurs from one observation to another Smirnov test results note that the observation. significance value of 0.616 is greater than 0.05, so it can be concluded that the data we tested normally distributed.

Test of Multicollonearity

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Table 4.5 4.3 Multiple Linear Regression Test Heteroscedasticity Test Results The results of this calculation explain the Coefficientsa closeness of the relationship between Model Unstandardized Standardized t Sig. Coefficients Coefficients ROA, ROE, ROI and NPM variables with B Std. Beta Error DPR variables. The rresult of the data if 1 (Co 7.57 1.45 using SPSS V 16.0 obtained multiple nsta 5.206 .154 0 4 nt) correlation values and other measures as X 1.13 1 .516 .453 .374 .262 8 follows: X2 .115 .162 .195 .710 .482 X3 .044 .102 .060 .428 .671 X4 -.159 .459 -.071 -.345 .732 Table 4.7 a. Dependent Variable: RES2 Results of Multiple Linear Regression Test Source: Secondary data processed, 2017; output of SPSS version 16 Coefficientsa Model Unstandardize Standar t Sig. Based on the test results in table 4.5 d Coefficients dized Coeffic above, it is known that the sig value of ients ROA (X1), ROE (X2), ROI (X3) and B Std. Beta NPM (X4) variables are 0.262, 0.482, Error 1 (Co 31.22 0.671, 0.732 greater than 0.05, nsta 9.127 3.421 .001 5 heteroscedasticity occurs. nt) X1 1.209 .795 .493 1.521 .136 X2 -.106 .284 -.101 -.371 .713 c) Autocorrelation Test X3 .505 .179 .388 2.813 .008 The purpose of this test is to determine X4 -.708 .805 -.179 -.880 .384 whether there is correlation between a. Dependent Variable: Y Source: Secondary data processed, 2017; output members of the observations arranged of SPSS version 16 according to the time series. Table 4.6 Based on the calculation above, it Autocorrelation Test Results obtained multiple linear regression Runs Test Unstandardized Residual equation: Test Valuea -4.96578 Cases < Test Value 22 Cases >= Test Value 23 Y= 31.225 + 1.209 X₁ - 0.106 X₂ + Total Cases 45 0.505 X₃ - 0.708 X₄ + ε Number of Runs 26 Z .607 Asymp. Sig. (2-tailed) .544 The equation above can be interpreted as a. Median follows: Source: Secondary Data processed 2017; outpus SPSS version 16 a. Intercept or constant is 31.225 is Intercept value means that the Based on the test results in Table 4.6 regression line intersects Y axis at point above note that the value of Asymp. 31.225 and is also the value of the Sig. (2-tailed) of 0.544> greater than dependent variable of estimation when 0,05, it can be concluded that there are X, X, X, and X are equal to zero. no symptoms or problems of Without ROA variable, ROE, ROI, autocorrelation. NPM magnitude of House 31.225.

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International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-2, Issue-1, 2018 (IJEBAR) ISSN: 2614-1280, https://jurnal.stie-aas.ac.id/index.php/IJEBAR b. Regression coefficient of 1,209 marked Ho: r₁ = 0 There is no significant influence positive states that every 1% ROA between ROA on DPR. increase will increase the House of Ha: r₁ ≠ 0 There is a significant influence 1,209% assuming other X variables are between ROA on DPR. constant. Ho: r₁ = 0 There is no significant influence c. Regression coefficient of - 0.106 with between ROE on DPR. negative sign states that every increase Ha: r₁ ≠ 0 There is a significant influence of ROE by 1% will lower the House of between ROE on DPR. 0106% assuming other variable X Ho: r₁ = 0 There is no significant influence constant. between ROI and DPR. d. Regression coefficient of 0,505 marked Ha: r₁ ≠ 0 There is a significant influence positive states that any increase in ROI between ROI and DPR. of 1% will increase the House of Ho: r₁ = 0 There is no significant influence 0.505% assuming other X variables are between NPM on DPR. Ha: r₁ ≠ 0 There is a significant influence Table 4.8 between NPM on DPR. a Test Result t Coefficients Model Unstandardized Standardi t Sig. Coefficients zed The level of confidence used is 95% then Coefficie nts the value of α = 0.05. Basic decision- B Std. Beta Error making in t test i.e 1. H0 accepted and Ha 1 (Const 31.2 3.42 9.127 .001 rejected if the value of t arithmetic 0, 05, 2. H0 9 1 X2 -.106 .284 -.101 -.371 .713 rejected and Ha accepted if the value of t X3 2.81 .505 .179 .388 .008 arithmetic> t table or if the value of Sig. 3 X4 -.708 .805 -.179 -.880 .384 <0, 05. Then the test can be done partially a. Dependent Variable: Y as follows: constant. e. Regression coefficient of - 0.708 is negative signified that every increase of a. From the results of partial test NPM of 1% will decrease the House of calculations obtained value of t equal to - 0.708% assuming other arithmetic 1.521 0.05, then Ho accepted Ha rejected this means there is no significant influence 4.4 Hypothesis Testing Results between the variable ROA (X1) to the The results of multiple linear regression variable changes DPR . calculations above cannot be used as the b. From the results of partial test basis of conclusions, therefore required a calculations obtained value of t test of the significance of the model, either arithmetic - 0.371 0.05, then a) Test t (Partial effect test) Ho accepted Ha rejected this means The hypothesis of the t test are: there is no significant influence

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Tabel 4.10 Margin (NPM) to Dividend Payout Determination Coefficient Test Result Ratio. (R²)Model Summary Mod R R Adjuste Std. Error c) Determination Coefficient Test (R²) el Sq d R of the uar Square Estimate Based on the summary output, it is known e that the coefficient of determination (R 1 .53 .28 25.9 Square) is 0.283 (value 0.283 is the a .211 2 3 5952 squaring of correlation coefficient or R, a. Predictors: (Constant), X4, X3, that is 0,532 x 0,532 = 0,283). The X2, X1 magnitude of the coefficient of between variable ROE (X2) on changes in variables DPR. determination (R Square) 0.283 equals c. From the results of partial test 28.3%. This figure means that ROA, ROE, calculation obtained t value 2.813> t ROI and NPM affect the House of 28.3%. table 2.02108 and significant value of While the rest (100% - 28.3% = 71.7%) is 0.008 <0.05 with a coefficient marked influenced by other variables beyond this positive, then Ho rejected Ha accepted regression model. The magnitude of the this means there is a significant influence between the variable ROI (X3) against changes in DPR variables. influence of these other variables is often d. From the results of partial test Table 4.9 calculations obtained value t arithmetic b - 0.880 0.05, then Ho accepted Model Sum of df Mean F Sig. Squares Square Ha rejected this means there is no 1 Regr 10641. 2660.4 3.94 significant influence between variables essio 4 .009a 848 62 8 NPM (X4) against the changes in DPR n variables. Resi 26955. 673.89 40 b) Test F (Test of influence dual 871 7 Tota 37597. simultaneously) 44 l 719 Based on the results of the F test above a. Predictors: (Constant), X4, X3, X2, X1 b. Dependent Variable: Y obtained F count is 3.948 larger than F table that is 2.60 with a significance Source: Secondary Data processed 2017 outputs SPSS level of 0.009 smaller than α = 0.05, version 16 then than Ha is accepted. The results of referred to as error (e). From the above the above tests can be concluded resul simultaneously there is a significant

influence between Return On Assets

(ROA), Retun On Equity (ROE),, Return On Investment (ROI), Net Profit

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International Journal of Economics, Business and Accounting Research (IJEBAR) Peer Reviewed – International Journal Vol-2, Issue-1, 2018 (IJEBAR) ISSN: 2614-1280, https://jurnal.stie-aas.ac.id/index.php/IJEBAR ts can be concluded the value of R Square obtained value significance 0.009 smaller 0.283 is less close to 1, then the effect of X than α = 0.05, then than the hypothesis to Y is not large. accepted. The results of this study showed that ROA, ROE, ROI and NPM together

(simultaneously) have a significant effect 4.5 Discussion of Research Results on House of Representatives by 28.3%. a) Return On Assets While the rest (100% - 28.3% = 71.7%) is The first hypothesis states that the influenced by other variables beyond this return on assets have a significant regression model. positive effect on the DPR. Testing this hypothesis shows that the variable ROA has no significant effect on the House. 5. CONCLUSIONS AND b) Return On Equity SUGGESTIONS The second hypothesis states that the 5.1 Conclusion return on equity has a significant a. Based on the results of the first positive effect on the DPR. From the hypothesis testing, it showed partially results of hypothesis testing using t test that ROA has no significant effect on obtained value t arithmetic - 0.371 < the House, where the value of ttable 2.02108 and significant value of 0.713 > 0.05. Means there is no significance of 0.136 is greater than the significant effect between the change of value of 0.05 so that this hypothesis is ROE variable to the variable change of rejected. DPR so that the hypothesis is rejected. b. Based on the results of the second c) Return On Investment hypothesis testing, showed partially that The third hypothesis states that the ROE has no significant effect on the return on investment has a significant positive effect on the DPR. From the House, where the value of t arithmetic - results of hypothesis testing using t test 0.371 smaller than t table 2.02108 and obtained significance value of 0.008 significant value of 0.713 greater than smaller than the value of 0.05 so that 0.05 so the hypothesis is rejected . this hypothesis is accepted. c. Based on the results of the third d) Net Profit Margin hypothesis testing, ROI showed a The fourth hypothesis states that Net significant positive partial effect on the Profit Margin has a significant positive effect on DPR. From the results of House, which obtained a significance hypothesis testing using t test obtained value of 0.008 smaller than the value of significant value of 0.384 greater than 0.05 so that this hypothesis is accepted. 0.05. Means there is no significant d. Based on the results of the fourth influence between the change of NPM hypothesis testing, it showed partially variables to changes in DPR variables, that NPM has no significant effect on so the hypothesis is rejected. Parliament, where the value of The fifth hypothesis states that there is a significant influence of Return On significant value of 0.384 is greater than Assets, Return On Equity, Return On 0.05 so the hypothesis is rejected. Investment and Net Profit Margin to e. Based on the results of the fifth Dividend Payout Ratio simultaneously. hypothesis testing, in the simultaneous From the results of hypothesis testing F test and the determination test shows using F test and determination test

International Journal of Economics, Business and Accounting Research (IJEBAR) Page 32

that the Return On Equity, Net Profit Efni, Yulia. 2013. Analisis Kebijakan Margin, Return On Investment and Pendanaan, Kepemilikan Manajerial Return On Assets simultaneously have dan Aliran Kas Bebas terhadap Kebijakan Dividen Pada Perusahaan significant effect on Dividend Payout Non Manufaktur yang Terdaftar di Ratio. Bursa Efek Indonesia ( BEI ). Jurnal. f. The amount of influence on Return On Febrianti, Reni. (2014). Pengaruh Equity, Net Profit Margin, Return On Independensi, Due Professional Care Investment and Return On Assets to dan Akuntabilitas Terhadap Kualitas Dividend Payout Ratio simultaneously Audit. Jurnal Akutansi. 3 (1). Padang. 28.3% while the remaining 71.7% Hanafi, (2004). Manajemen Keuangan. Yogyakarta: BPFE UGM. influenced by other variables beyond Harahap. (2004). Analisis Kritis Atas this regression model. Laporan Keuangan. Edisi Pertama. Cetakan Keempat. PT. Raja Grafindo 5.2 Suggestions Persada. Jakarta. Ikatan Akuntan Indonesia. 2007. Standar a. This study only uses Dividend Payout Akuntansi Keuangan. Jakarta: Ratio to assess company performance. Salemba Empat. It is further expected to develop this Jumingan. 2006. Analisa Laporan research by assessing other financial Keuangan. Jakarta: Bumi Aksara. ratios that can be used to assess Mulyadi. 2001. Sistem Akuntansi Edisi company performance such as EPS, Tiga. Jakarta : Salemba Empat. DER, CR, etc. Simamora. 2000. Basis Pengambilan b. Other factors that affect the change of Keputusan Bisnis. Salemba Empat. company performance should get Jakarta. attention before taking investment S. Munawir. 2004. Analisis Laporan decisions. So it is not only financial Keuangan, Edisi Ke-4, Liberty, ratios of profitability such as ROA, Yogyakarta. Ikatan Akuntansi ROE, ROI and NPM, but also can use Indonesia (IAI). 2004. Pernyataan other ratios that may affect changes in Standar Akuntansi Keuangan (PSAK company performance, such as Quick ). Jakarta: Salemba Empat. Ratio, Laverage, Institutional Srimindarti, C, 2006. Balanced Scorecard Ownership, Managerial Ownership. Sebagai Alternatif untuk Mengukur Kinerja, STIE Stikubank, Semarang.

References

Fahmi, Irham. (2011). Analisis Laporan Keuangan. Bandung: Alfabeta. Bambang Riyanto. 2001. Dasar-dasar Pembelanjaan Perusahaan. BPFE, Yogyakarta. Dwi Prastowo, dan Rifka Julianty. (2002). Analisis Laporan Keuangan: Konsep dan Aplikasi. Yogyakarta: AMP YKPN

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