69
3. Does either company
issues bonds or
not (Dummy)
influence dividend per share
at time t (DPS
t
) significantly?
No,
from
the
two
models conducted by
author, either
company
issues
bonds
or
not,
it does
not
influence dividend per share at
time t (called as
variable LDPS)
significantly.
4. Does size of company influence dividend per share at time t (DPS
t
) significantly?
Yes,
from the second
model conducted by author, size (called as
variable LSize)
influences dividend per share at time t (called as variable LDPS) significantly.
From
the
analysis
of
Model
1,
46.1%
variables
(LDPS1,
EPS
and
Dummy)
are
highly
significant in
explaining the
LDPS.
From the analysis of
Model 2,
49.7%
variables
(LDPS1,
EPS,
Dummy
and
LSize)
are
highly
significant in
explaining
the
LDPS.
This
means
there
are
still
other
variables
that
explain
LDPS.
Lagged
DPS,
EPS
and
size
of
company
have
significant
influence
in
determining the
dividends
payment. The
higher
the
total
assets,
the
higher
the
dividend
will
be
paid.
Bigger
companies needs
more
fund
to
finance their
projects, such
as
opening new
branches/stores,
purchasing
raw
materials,
buying
new
plants/lands/fixed assets,
etc.
Firms with higher profits should pay higher dividends.
5.2
Further Research
Topics related to dividends are still so wide opened with quite a lot of journals
support
the research. As
available
in the
References section on
this paper, students,
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