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Nadia Sawitri, A., & Sulistyowati, C. (2018). Stock Liquidity and Dividend Policy. KnE Social Sciences, 3(10). https://doi.org/10.18502/kss.v3i10.3461

https://doi.org/10.18502/kss.v3i10.3461

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authors

  • A Nadia Sawitri
    No author data available.
  • C Sulistyowati
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Published Date

  • Nov 12, 2018

Stock Liquidity and Dividend Policy

KnE Social Sciences / The 2018 International Conference of Organizational Innovation (ICOI-2018) /

Abstract

This research aims to determine the effect of stock liquidity on dividend policy. This research is conducted on nonfinancial firms listed on the Indonesia Stock Exchange over the period of 2014–2016, using purposive sampling method. This research uses two proxies of stock liquidity – Amihud illiquidity ratio and share turnover. This research uses multiple linear regression in order to determine the effect of the independent variable, which is stock liquidity, and control variables consisting of firm size, profitability, leverage, and cash holding on dividend policy as the dependent variable. The analysis shows that stock liquidity as proxied by Amihud illiquidity ratio has a negative insignificant effect, stock liquidity as proxied by share turnover has a negative significant effect, firm size, profitability, leverage and cash holding have a positive and significant effect, while leverage has a negative but insignificant effect on dividend policy. Thus, it can be concluded that stock liquidity has an effect on dividend policy in nonfinancial public firms in Indonesia.


 


 


Keywords: stock liquidity, Amihud illiquidity ratio, share turnover, dividend policy

References
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[3] Al-Najjar, Basil dan Erhan Kilincarslan. 2016. The Effect of Ownership Structure on Dividend Policy: Evidence from Turkey. Corporate Governance: The International Journal of Business in Society, Vol. 16(1), 135-161.


[4] Amihud, Y. 2002. Illiquidity and Stock Returns : Cross – Section and Time Series Effects. Journal of Financial Markets.


[5] Andrianto, Y., Adrian Rishad Mirza. 2016. A Testing of Efficient Market Hypothesis in Indonesia Stock Market. 3