Profitability, Company Size, and Gross Domestic Product on Dividend Policy (Empirical Study of Service Companies on the Indonesia Stock Exchange)

ABSTRACT : The purpose of this study was to determine the effect of profitability, company size, and grossdomestic product on dividend policy in service companies on the Indonesia Stock Exchange. The samplingtechnique used is the census technique, with the number of samples in this study amounted to 51 servicecompanies listed on the Indonesia Stock Exchange and distributes dividends consecutively in 2015-2019.Multiple Linear Regression analysis was used. Based on the analysis, profitability has a positive and significanteffect on dividend policy in service companies on the Indonesia Stock Exchange. Company size has a negativeand significant effect on dividend policy in service companies on the Indonesia Stock Exchange. This showsthat the larger the size of the company, the company will tend to have a smaller Dividend Payout Ratio. GrossDomestic Product (GDP) has a positive and significant effect on dividend policy in service companies on theIndonesia Stock Exchange.

Keywords: dividend policy, profitability, firm size, gross domestic product