Asset Growth, Investment Opportunity Set, Free Cash Flow as Determination of Dividend Payment Probability for Manufacturing Companies in Indonesia

Abstract

—The purpose of this paper to investigate the asset growth, investment opportunity set, free cash flow on dividend payment probability. Non probability sampling research sample with selected purposive sampling of 101 manufacturing companies in Indonesia. The research period is 2016-2018. The unit of analysis is a company with pooled data of 303 observations. Secondary data collection based on the Indonesian Capital Market Directory (ICMD). Data analysis techniques with descriptive and inferential. Inferential testing with logistic regression techniques because the dependent variable is in the form of categories or non-metrics, namely the probability of companies paying dividends and not making dividend payments. The research findings show that FCF has a log of odds for companies to positively pay dividends while MBAR as a proxy for IOS and Asset Growth was not found to be able to predict the log of odds for companies paying dividends.