International Journal of Social Science & Economic Research
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Title:
THE IMPACTS OF PROFITABILITY, LIQUIDITY, FREE CASH FLOW AND SET OPPORTUNITY OF INVESTMENT TO DIVIDEND AND ITS IMPACT ON ABNORMAL RETURN
(Empirical Study of Mining Companies Registered on Indonesia Stock Exchange)

Authors:
Mulia Saputra, Ridwan Ibrahim, Hemma Marlenny


Volume - 2 Issue - 12, Pages - 5492-5502

Abstract:
This study aimed at examining the impacts of profitability, liquidity, free cash flow, and set of investment opportunities to dividends and their impact on abnormal return either simultaneously or partially. The population in this study covered 41 mining companies registered on the Indonesia Stock Exchange during the period of 2011-2015 abnormal return of 41 mining companies registered in Indonesia Stock Exchange. Horizon time in this study is a combination of cross sectional studies with longitudinal (time series) called the panel data or pooled data. This study uses a panel type data balance (balance panel data). The method of analysis used in this research is path analysis method (path analysis). Sample size was obtained as many as 21 samples. The results of the research prove that 1) profitability, liquidity, free cash flow and investment opportunity sets together affect dividend, 2) profitability and investment opportunity sets affect dividend, 3) liquidity and free cash flow negatively affect dividend, 4) profitability and liquidity negatively affect abnormal return, 5) free cash flow and investment opportunity sets affect abnormal return, 6) dividend effect on abnormal return, 7) profitability, liquidity, free cash flow, and investment opportunity sets together effect to abnormal returns through dividends, 8) profitability and set of investment opportunities with an abnormal return through dividends, and 9) liquidity and free cash flow sets negatively affect the abnormal return through dividends.

Cite this Article:

[Saputra, Mulia. "THE IMPACTS OF PROFITABILITY, LIQUIDITY, FREE CASH FLOW AND SET OPPORTUNITY OF INVESTMENT TO DIVIDEND AND ITS IMPACT ON ABNORMAL RETURN." International Journal of Social Science and Economic Research, vol. 2, no. 12, 2017, pp. 5492-5502. December.]

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