Analysis of the Relationship of Retained Earnings to Total Equity (RE/TE), Return on Assets (ROA), and Inflation to Dividend Payout Ratio (DPR) in Indonesian Conventional Banks

Anang Rizky Alfahiz

No zvb2t_v1, OSF Preprints from Center for Open Science

Abstract: This study analyzes the relationship between Retained Earnings to Total Equity (RE/TE), Return On Assets (ROA), and inflation to Dividend Payout Ratio in conventional banks during the 2020 period. The author uses secondary data from 40 conventional banks listed on the Indonesia Stock Exchange (IDX) for 2020 in this study. The analysis method used is multiple linear regression to test the influence of the independent variable on the dependent variable. The results showed that RE/TE and ROA had a positive and significant influence on the Dividend Payout Ratio, while inflation had a negative but not significant influence. These findings indicate that a bank's internal financial performance, such as profitability, is more important in determining dividend policy than external factors such as inflation during the period. This research contributes to the understanding of the factors influencing dividend policy in the banking sector, as well as practical implications for bank management and investors in formulating effective dividend and investment strategies.

Date: 2024-05-28
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:zvb2t_v1

DOI: 10.31219/osf.io/zvb2t_v1

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