The Effect Of Liquidity, Leverage, And Profitability On Dividend Policy With Financial Distress As A Moderating Variable In Manufacturing Companies Sub Sector Food And Beverage Listed On The Indonesia Stock Exchange For The Period 2018-2022

Abstract

Dividend policy is a strategic corporate decision on how profits will be utilized, whether distributed to
shareholders as dividends or retained to support future investment financing. The indicator used to
measure dividend policy in this study is the Dividend Payout Ratio. Liquidity is the company's ability
to meet short-term obligations by utilizing current assets easily convertible to cash, such as receivables,
inventories, and cash. The indicator for liquidity measurement in this study is the Current Ratio.
Leverage indicates the extent to which a company utilizes borrowed funds or debt to finance its assets
or operations, measured by the Debt to Asset Ratio. Profitability represents the company's ability to
generate profits from its operations within a specific period, measured by the Return on Total Assets.
Financial distress is a critical condition in which a company faces significant financial difficulties
threatening its operational continuity, measured by the Altman Z-Score. This study aims to analyze the
influence of liquidity, leverage, and profitability on dividend policy with financial distress as a
moderating variable. This study was conducted on 42 companies, with 17 selected as samples using
purposive sampling for the 2018- 2022 period. Data analysis employed quantitative methods with Smart
PLS software. The results showed that liquidity and leverage influence dividend policy, while
profitability does not. Financial distress moderates the effect of profitability on dividend policy but does
not moderate the effect of liquidity and leverage on dividend policy.