The Influence of Return on Equity, Debt to Assets Ratio, Current Ratio, and Cash Position on Dividend Payout Ratio

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Cash position significantly influences dividend payout ratio, while return on equity, debt to assets ratio, and current ratio do not.
40 observational data points from 10 food and beverage companies were analyzed to establish these relationships.
This analysis employed multiple linear regression and hypothesis testing to evaluate the impact of financial ratios on dividends.
The findings may enable firms to better strategize their dividend policies, enhancing financial planning.

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Observational analysis found cash position significantly affects dividend payout ratio in firms, implying financial strategies matter.

Aqmalia et al. (2024) studied this question.

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