Title: FIRM LIFE CYCLE AND DIVIDEND POLICY IN MANUFACTURING COMPANIES LISTED ON THE IDX 2000-2009 PERIOD

Author: ITA UKHTIANTI QANITAH

Affiliations : Master of Management Science Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This study aims to examine the influence of the firm life cycle on corporate dividend policy, which includes dividend payment decisions and the amount of dividends paid by the company. The firm life cycle is measured based on the company's average sales growth over 5 years, which is then classified into the start-up, early expansion, late expansion, mature, and decline stages. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2000-2009. The techniques used in this study are logistic regression and multiple linear regression. Using 89 research samples during the period 2000-2009, 307 observations were obtained that distributed dividends, the remaining 583 were companies that did not distribute dividends. The results of this study indicate that companies in the expansion and mature stages have a significant positive influence on the company's decision to pay dividends. Furthermore, companies in the mature stage tend to distribute larger dividends than those in the non-mature stage.

Keywords: firm life cycle, dividend payout ratio, profitability, growth

Sources: http://repository.unair.ac.id/37232/