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THE EFFECT OF DIVIDEND PAYOUT RATIO, CURRENT RATIO, ASSETS SIZE, ASSETS GROWTH, LEVERAGE, EARNINGS VARIABILITY AND EARNINGS COVARIABILITY ON MARKET BETA
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| Author | RR. WIDANARNI PUDJIASTUTI (Tim: Ketua) |
| ID | 202.710.246 |
| Published Date | 05-03-2007 |
Abstract
The objective of this study is to test the effect of some accounting variables, e.g: dividend pay out ratio, current ratio, asset size, asset growth, leverage, earnings variability, and earnings covariability, to market beta. This research used 72 samples that were chosen using stratified random sampling method. Analytical tool used to test the 2 hypotheses were multiple regression. Other techniques were Kolmogorov-Smirnov to test data normality, Dimson method to adjust market beta to test classic assumption to independent variable, and t test to know industrial difference. Result of hypotheses testing showed that null hypotheses could not be rejected for dividend pay out ratio, asset growth, leverage, and earnings covariability to market beta. It meant that some of the first hypotheses, H1a, H1d, H1e, H1g could not be supported. The conclusion was, there was no effect of dividend pay out ratio, asset growth, leverage, and earnings covariability to market beta. While the supported first hypothesis were H1b, H1c, and H1f. The conclusion was, there was an effect of current ratio, asset size, and earnings variability to market beta. Because the second hypothesis H2a was also supported, it can be concluded that there was a significant effect of the seven accounting variables to market beta with F test result as of 34.24.