The Analysis of the Relationship among Dividends, Leverage Ratio and Profitability Ratios of Listed Companies in the Stock Exchange: Non-Life and Life Insurance Sectors

Abstract

The objective of this research was to study and analyze the presentation of financial information through financial reports of companies in the insurance and life insurance business groups. especially the information on the dividend payout ratio leverage ratio and profitability ratio of 16 listed companies during 2013-2017 The data analysis process for this research is divided into four parts: (1) Financial Data Analysis. with descriptive statistics (2) financial ratio analysis (3) dividend payment analysis with descriptive statistics (4) analysis of the relationship between dividends with a leverage ratio and profitability ratio

The study results found that the financial ratios with the same direction as the dividend payout ratio but statistically insignificant, including operating profitability ratio, net profitability ratio, return on assets ratio, and return on equity ratio. On the other hand, the financial ratio with contrary direction to dividend payout ratio but there was no statistically significant consisted of the debt to equity ratio. However, the debt to total asset ratio was the one that was not only in the opposite direction to the dividend payout ratio but also was statistically significant.

The objective of this research was to study and analyze the presentation of financial information through financial reports of companies in the insurance and life insurance business groups. especially the information on the dividend payout ratio leverage ratio and profitability ratio of 16 listed companies during 2013-2017 The data analysis process for this research is divided into four parts: (1) Financial Data Analysis. with descriptive statistics (2) financial ratio analysis (3) dividend payment analysis with descriptive statistics (4) analysis of the relationship between dividends with a leverage ratio and profitability ratio

The study results found that the financial ratios with the same direction as the dividend payout ratio but statistically insignificant, including operating profitability ratio, net profitability ratio, return on assets ratio, and return on equity ratio. On the other hand, the financial ratio with contrary direction to dividend payout ratio but there was no statistically significant consisted of the debt to equity ratio. However, the debt to total asset ratio was the one that was not only in the opposite direction to the dividend payout ratio but also was statistically significant.