Impact of Inflation and Financial Ratios on Dividend Distribution in Healthcare Sector Companies Listed on the Indonesia Stock Exchange (2020-2022)
Octaviana Ardaniswara *
Faculty of Economics, State Islamic University of Maulana Malik Ibrahim, Malang, Indonesia.
Kartika Wahyu Astutik
Faculty of Economics, State Islamic University of Maulana Malik Ibrahim, Malang, Indonesia.
Nawirah
Faculty of Economics, State Islamic University of Maulana Malik Ibrahim, Malang, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
Objective: To examined the influence of inflation, current ratio, debt to equity ratio, and return on equity on dividend distribution in health sector companies during the 2020 to 2022 period, because this period includes the COVID-19 pandemic.
Study Design: This kind of research is quantitative and depends on the Indonesia Stock Exchange for the acquisition of secondary data.
Study Location and Duration: 2020–2022 listings of health sector firms on the Indonesia Stock Exchange.
Methodology: Purposive sampling was used in this study to identify 10 companies that met the objectives of the investigation. The analysis technique used is panel data regression, the analysis tool EViews 12.
Results: Research findings show that inflation, DER, and ROE do not have a significant negative impact on dividend distribution, while CR shows a significant positive impact. This shows that liquidity plays an important role in dividend distribution decisions during the Covid 19 pandemic.
TImplication: This study underscores the importance of maintaining adequate levels of liquidity for healthy companies when determining dividend policy, especially during the Covid 19 pandemic. Investors and policymakers are advised to consider these factors when evaluating a company's financial health and dividend prospects.
Keywords: Inflation, current ratio, debt to equity ratio, return on equity, healthcare sector, dividend distribution policy