The Influence of Profitability and Growth Opportunity on Dividend Payment of the Firms in the Miscellaneous Industry Sector in Indonesia Stock Exchange

ABSTRACT The objectives of our research are to examine the impact of profitability and growth opportunity on dividend payment. After analyzing the data of firms in Indonesia over the sample period [2009][2010][2011][2012][2013], by using regression and correlation analysis, for testing hypotheses 1 and 2 to investigate the impact of profitability and growth opportunity on dividend payment, we made the conclusion. For hypothesis 1, we find that there is a positive insignificant effect of profitability on dividend payment, while for hypothesis 2 we conclude that growth opportunity has a positive and significant effect on dividend payment. These implied that the higher profitability and growth opportunity of the firms, the higher dividends pay to firm's shareholders