A Review of the Panel Data to Determine the Influence of Dividend Policy on Firm Performance

Abstract

Examining the connection between dividend policy and performance of firm is the main goal of this research. 40 manufacturing enterprises from 2012 to 2021 are included in the sample. The financial statements of the chosen manufacturing companies were employed to construct the panel data. The dependent variable was return on assets (ROA), while the independent variables were price earnings ratio (PER), dividend payout ratio (DPOR) and earnings per share (EPS). Descriptive analysis, correlation, and multiple regressions were employed as data analysis methods. The findings demonstrates that there is a positive association among firm performance and dividend policy. Return on assets is favorably impacted by the dividend payout ratio, price-earnings ratio and profits per share. Our study's limitation is that we only look at 40 manufacturing companies; other researchers utilize a larger sample size, and other sector companies anticipate manufacturing.