The Influence of Firm Size, Company Age, Leverage, and Profitability on Dividend Policy in Banking Companies Listed on the Indonesia Stock Exchange in 2020-2024

Abstract

This study aims to analyze the influence of firm size, company age, leverage, and profitability on dividend policy in banking sector companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 period. Dividend policy is a crucial decision for companies in determining the portion of profits to be distributed to shareholders, and is therefore influenced by various internal company factors. The dependent variable in this study is dividend policy, proxied by the Dividend Payout Ratio (DPR). The independent variables include firm size, measured using the natural logarithm of total assets, company age based on the difference between the research year and the company's founding year, leverage, proxied by the Debt to Equity Ratio (DER), and profitability, proxied by Return on Assets (ROA). This study uses a quantitative method with a purposive sampling technique in banking companies that meet the criteria. Data analysis was performed using multiple linear regression, beginning with the classical assumption test. The results show that firm size has a significant positive effect on dividend policy, company age has a significant negative effect on dividend policy, leverage has a positive but insignificant effect on dividend policy, and profitability has a negative but insignificant effect on dividend policy. The results of this study are expected to be a consideration for company management and investors in making decisions related to dividend policy