Cash dividend: Debt policy and liquidity in Indonesian consumer cyclicals company

Abstract

This study aims to investigate whether debt policy in Indonesia tends to commit cash dividend and whether liquidity maximizes cash dividend. Using a purposive sampling technique, 16 consumer cyclicals companies were selected as research samples that are wholly registered on the Indonesia Stock Exchange. A total of 142 firm-year observations were provided by their annual reports from 2018-2021 and processed within the multiple linear regression statistical method. The study depicts that debt policy negatively affects cash dividend. Meanwhile, the liquidity ratio cannot maximize or minimize cash dividend payments by companies.