Kandungan Informasi Inkremental Perubahan Dividen tentang Profitabilitas Perusahaan di Masa yang Akan Datang

This research investigates the incremental information content of dividend changes about future profitability. We regress three of measurement of earnings (earnings level, earnings changes, and abnormal earnings) to dividend changes and a number of control variables. By using 114 samples (429 firm-years) of manufacturing firms at Jakarta Stock Exchange over 1990-1999, We find that dividend changes provide information about the earnings changes in subsequent years, incremental to market and accounting data. The paper also documents that dividend changes are positively related to earnings changes for merely one year ahead. In detail examining, We find that dividend decrease convey must new information about earnings changes and abnormal earnings for one year ahead rather than dividend increase