The Effect Of Collateralizable Assets, Debt Ratios, And Auditor's Reputation To Dividend Policies In Manufacturing Companies Listed On The BEI 2012-2014

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The Effect of Collateralizable Assets, Debt Ratios, and Auditor's Reputation to Dividend Policies in Manufacturing Companies Listed on the BEI 2012-2014

Introduction

The dividend policy of a company is a crucial aspect of its financial management, as it directly affects the company's ability to attract and retain investors. In the context of manufacturing companies listed on the Indonesia Stock Exchange (IDX), the dividend policy is influenced by various factors, including collateralizable assets, debt ratios, and auditor's reputation. This study aims to examine the extent of the effect of these factors on dividend policies in manufacturing companies listed on the IDX during the 2012-2014 period.

Literature Review

The literature on dividend policy suggests that collateralizable assets, debt ratios, and auditor's reputation are significant factors that influence a company's dividend policy. Collateralizable assets, such as property, plant, and equipment, can be used as collateral to secure loans, which can provide a company with the necessary funds to pay dividends. Debt ratios, on the other hand, can affect a company's ability to pay dividends, as high debt levels can increase the risk of default and reduce a company's ability to pay dividends. Auditor's reputation, which is reflected in the quality of the audit report, can also influence a company's dividend policy, as investors may view a company with a reputable auditor as more creditworthy and more likely to pay dividends.

Methodology

This study uses a quantitative descriptive approach, employing multiple linear regression analysis to examine the relationship between collateralizable assets, debt ratios, auditor's reputation, and dividend policies in manufacturing companies listed on the IDX. The study uses secondary data collected from the IDX website, including financial statements, annual reports, and auditor reports.

Results

The results of this study show that collateralizable assets and auditor's reputation have a significant influence on dividend policies in manufacturing companies listed on the IDX. However, debt ratios do not have a significant influence on dividend policies. The study also finds that manufacturing companies with collateralizable assets and reputable auditors tend to provide higher dividends to their investors.

Discussion

The results of this study suggest that collateralizable assets and auditor's reputation are important factors that influence a company's dividend policy. The existence of collateralizable assets can provide a company with the necessary funds to pay dividends, while a reputable auditor can increase investor confidence and encourage a company to provide higher dividends. On the other hand, debt ratios do not have a significant influence on dividend policies, which may be due to the fact that manufacturing companies tend to have low debt ratios and focus more on business growth than on returning dividends to investors.

Recommendations

This study provides several recommendations for stakeholders, including manufacturing companies and investors. For manufacturing companies, the results of this study can be used as consideration in determining dividend policies. Companies can increase collateralizable assets and choose reputable auditors to increase investor confidence and encourage companies to provide higher dividends. For investors, the results of this study can be used as a consideration in choosing the company to be invested. Investors can choose manufacturing companies with collateralizable assets and reputable auditors, as these companies tend to provide higher dividends.

Conclusion

This study shows that collateralizable assets and auditor's reputation have a significant influence on dividend policies in manufacturing companies listed on the IDX. The results of this study provide valuable insights for stakeholders, including manufacturing companies and investors, and highlight the importance of considering collateralizable assets and auditor's reputation when determining dividend policies.

Limitations

This study has several limitations, including the use of secondary data and the limited sample size. Future studies can build on this study by using primary data and a larger sample size to provide more robust results.

Future Research Directions

Future studies can explore the relationship between collateralizable assets, debt ratios, auditor's reputation, and dividend policies in other industries and contexts. Additionally, future studies can examine the impact of other factors, such as corporate governance and market conditions, on dividend policies.

References

  • [1] [Author's Name]. (Year). [Title of the Study]. [University Name].
  • [2] [Author's Name]. (Year). [Title of the Study]. [University Name].
  • [3] [Author's Name]. (Year). [Title of the Study]. [University Name].

Appendices

  • [Appendix 1: List of Variables]
  • [Appendix 2: Data Description]
  • [Appendix 3: Regression Analysis Results]

Note: The references and appendices are not included in the word count.
Q&A: The Effect of Collateralizable Assets, Debt Ratios, and Auditor's Reputation to Dividend Policies in Manufacturing Companies Listed on the BEI 2012-2014

Frequently Asked Questions

Q: What is the main objective of this study?

A: The main objective of this study is to examine the extent of the effect of collateralizable assets, debt ratios, and auditor's reputation on dividend policies in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2012-2014 period.

Q: What are collateralizable assets?

A: Collateralizable assets are assets that can be used as collateral to secure loans. Examples of collateralizable assets include property, plant, and equipment.

Q: How do collateralizable assets affect dividend policies?

A: The existence of collateralizable assets can provide a company with the necessary funds to pay dividends, thereby increasing investor confidence and encouraging companies to provide higher dividends.

Q: What is the role of auditor's reputation in influencing dividend policies?

A: Auditor's reputation, which is reflected in the quality of the audit report, can increase investor confidence and encourage companies to provide higher dividends.

Q: Why do debt ratios not have a significant influence on dividend policies?

A: Debt ratios do not have a significant influence on dividend policies because manufacturing companies tend to have low debt ratios and focus more on business growth than on returning dividends to investors.

Q: What are the implications of this study for manufacturing companies?

A: The results of this study suggest that manufacturing companies can increase collateralizable assets and choose reputable auditors to increase investor confidence and encourage companies to provide higher dividends.

Q: What are the implications of this study for investors?

A: The results of this study suggest that investors can choose manufacturing companies with collateralizable assets and reputable auditors, as these companies tend to provide higher dividends.

Q: What are the limitations of this study?

A: This study has several limitations, including the use of secondary data and the limited sample size. Future studies can build on this study by using primary data and a larger sample size to provide more robust results.

Q: What are the future research directions for this study?

A: Future studies can explore the relationship between collateralizable assets, debt ratios, auditor's reputation, and dividend policies in other industries and contexts. Additionally, future studies can examine the impact of other factors, such as corporate governance and market conditions, on dividend policies.

Additional Resources

  • [1] [Author's Name]. (Year). [Title of the Study]. [University Name].
  • [2] [Author's Name]. (Year). [Title of the Study]. [University Name].
  • [3] [Author's Name]. (Year). [Title of the Study]. [University Name].

Glossary

  • Collateralizable assets: Assets that can be used as collateral to secure loans.
  • Debt ratio: The ratio of a company's total debt to its total assets.
  • Auditor's reputation: The quality of the audit report, which reflects the auditor's expertise and credibility.
  • Dividend policy: The company's decision on how to distribute its profits to shareholders.

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