THE IMPACT OF DEBT POLICY, PROFITABILITY, AND LIQUIDITY ON DIVIDEND POLICY OF THE MANUFACTURING FIRMS LISTED IN INDONESIA STOCK EXCHANGE

The dividend is a device for controlling shareholders to enrich themselves by transferring wealth coming from the debt holders. This study intends to prove that wealth transfer does not exist in manufacturing public industry by testing the impact of debt policy on dividend policy. This research also uses profitability and liquidity as the control variable. The research population is manufacturing firms. The members of sample are taken from the population members by stratified random sampling method. The study uses the logistic regression model as data analysis method. This study concludes that debt policy has a negative impact on the firm probability to pay dividend. It means that wealth transfer from debt holders to shareholders is not available in this industry. Profitability and firm liquidity acting as the control variable have a positive impact on firm probability to pay dividend