Abstract:
Public companies are substantial revenue contributors to the state through taxes and contracts.
Public companies’ existence is highly influenced by the dividends paid. Research on dividends is
still relevant to conduct given the inconsistency in the existing research results. This study aims to
conduct an analysis of the effects of financial ratios that is Current Ratio, Debt to Equity Ratio,
Return on Assets, Growth, and Firm Size on Dividend Payout Ratio. The research sample is
manufacturing industry companies listed on the Indonesian Stock Exchange. Multiple linear
regression analysis was used to test the research hypotheses. The research results show that only
the independent variable Current Ratio has a significant effect on the dependent variable Dividend
Payout Ratio, for other independent variables does not significantly influence Dividend Payout
Ratio. Based on these results, the liquidity ratio needs to be considered by public companies in
dividend payments.
