How to Attract Attention of Investors Through Dividend Policy on the Consumer Goods Industries?

When the tendency of dividends pay-out ratio is falling down, the number of investors who wants to invest on the consumer goods industries becomes decreasing. It was predicted because several firms of the consumer goods industry prefer to reinvestment their profits. This problem has given a significant effect on dividend policy. A lot of factors could impact on dividend policy, but we assume that leverage has effect on dividend policy, and the profitability has control on leverage and dividend policy as intervening variable. This paper aims to examines the effect of leverage on dividend policy, the effect of leverage on profitability, the effect of profitability on dividend policy. The number of samples was collected 8 out of 36 companies of the Consumer goods industries listed on the Indonesia Stock Exchange (IDX) period of 2008 - 2014. The Statistical method is analyzed by using Path Analysis. We found that the direct effect of leverage on dividend policy is a negative effect (-0.648), it might be happening because of degradation of leverage could be the management of Consumer goods industries more focus to holding on their profit rather than to increase their leverage. Leverage has positive effect (0.872) on profitability. Then, profitability has positive effect (1.004) on dividend policy. Therefore, the implication about this result is the companies must be serious attention on dividend policy to attract attention of investor