The Effect of Financial Performance Measured With Rentability Ratio Against Dividend Payout Ratio ( Empirical Study on Manufacturing Companies group listed on BEI ) Imas

This study aims to examine whether there is a significant effect of the company's financial performance as measured by the ratio of profitability with Return on Assets (ROA), Return On Equity (ROE), Return On Investment (ROI) and Net Profit Margin (NPM) to Dividend Payout Ratio (DPR). The data collected is obtained from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange period 2013-2015. The analysis used to know how big the influence of ROA, ROE, ROI NPM to DPR company, writer do statistical analysis done by using descriptive analysis, doubled linear regression, correlation coefficient and coefficient of determination. While testing the hypothesis using F test for simultaneous test and t test partially, using SPSS 16. Based on the results of data processing, obtained regression equation Y = 31.225 + 1.209 X1 0.106 X2 + 0.505 X3 0.708 X4 + ε, analysis results Statistics simultaneously obtained the value of determination coefficient of 28.3%. While the rest equal to 71.7% influenced by other factors. Based on hypothesis test by using significant level α = 0,05 result of F test, show that together regression model can be used to explain the relation between Return on Asset, Return On Equity, Return On Investment and Net Profit Margin to Dividend Payout Ratio.


Introduction
In Indonesia, every company is certainly not spared from global competition that can make an opportunity or can be a threat to the company if not anticipate before.Included are manufacturing companies listed on the BEI.In this case the capital market has an important role as an effective means to raise funds even more for companies that need capital for longterm financing investment.Before investing, investors should consider the condition of the company that can be seen from the performance of manufacturing companies listed on the Indonesia Stock Exchange (BEI), exchange rate fluctuations, transaction volume, stock conditions, and environmental conditions of the company is located.
The required information is a company performance report that is reflected in the financial statements.To measure the financial performance of a company can use financial ratios such as liquidity ratios, activity ratios, profitability/profitability ratios, solvency ratios and market ratios.
The proportion of dividends paid to shareholders depends on the ability of the company to generate profits and the form of dividend policy applied by the company concerned.Stocks with large dividends are one of the most attractive factors for investors that can raise stock prices.In line with the increasing dividend given, it is expected that the level of financial performance measured by profitability or profitability ratios grows higher in the ability to generate profits.Accordingly, in this study the author took the title: "The Effect of Financial Performance Measured With Rentability Ratio Against Dividend Payout Ratio" (Empirical Study on Manufacturing Companies group listed on BEI).

Underlying Theory a. Financial performance
Performance derived from the word performance, performance is expressed as achievements achieved by the company within a certain period that reflects the level of health of the company.Understanding Financial Performance by Fahmi (2011: 2), is "Financial performance is an analysis conducted to see how far a company has implemented by using the rules of financial implementation properly and correctly.

1) Performance Measurement
The company's financial performance is closely related to the measurement and performance appraisal.Performance measurement (performance measurement) is the qualification and efficiency and effectiveness of the company in business operations during the accounting period.The performance assessment according to Sri mindarti (2006: 34) is the determination of operational effectiveness, organization, and employees based on the targets, standards and criteria that have been previously set periodically.Performance measurement is used by the company to make improvements over its operational activities in order to compete with other companies.Financial performance analysis is a critical review process to review data, calculate, measure, interpret, and provide solutions to the company's finances in a certain period.

2) Analisis Kinerja Keuangan
Financial performance can be assessed with multiple analytical tools.technique to determine the level of sales to be achieved so that companies do not experience losses.
3) Financial Performance Assessment For investors, information about the company's financial performance can be used to see if they will keep their investment in the company or look for other alternatives.If the company's performance is good then the business value will be high.With high business value makes investors glance at the company to invest its capital so that there will be an increase in stock prices.
Or it can be said that stock price is a function of company value.

b. Financial statements
The financial statements are the end result of the accounting process prepared in accordance with generally accepted accounting principles.The financial statements are the responsibilities that have been entrusted to him.The financial condition and results of the operations of the company as reflected in the financial statements may reflect the performance or financial performance of the competing firm. 1) Types of Financial Statements a) Balance Sheet A balance sheet is a financial statement that provides information about a company's financial position at a given moment.To be able to describe the company's financial position at a given moment, the balance sheet has three elements of the financial statements of assets, liabilities, and equity.

b) Statements of Profit and Loss
The income statement has two elements in generating profit during the period of performance that is: (Dwi Prastowo and Rifka Julianty, 2002: 20).Income is a form of increase in economic benefits in the form of income or increase in assets or decrease in liabilities.For example interest income, rent, service income.c) Expense is the decrease of economic benefits in the outflow of assets or liabilities.For example: salary and wages, depreciation, cost of goods sold.

2) Statements of changes in equity
According to IAI (2007: 1.12), the Company must present the statement of changes in equity as a major component of the financial statements, showing the related period's profit or loss, the accumulated balance of profit or loss at the beginning and end of the period and its amendments.
3) Statement of cash flows According to IAI (2007: 2.2), that cash flow is the inflow and outflow of cash or cash equivalents.
According to IAI (2007: 1.13) records on financial statements should be presented systematically.Each item in the balance sheet, income statement and cash flow statement must relate to the information contained in the notes to the financial statements.Notes to financial statements disclose: information on the basis of the preparation of financial statements and accounting policies that are selected and applied to the events and transactions that are important, the information required in the statement of financial accounting standards but not presented in the balance sheet, income statement, cash flow statements and reports changes in equity, additional information not presented in the financial statements but required in a fair presentation.4) Objectives of Financial Statements a) Provide information regarding the financial position, performance and changes in the financial position of a company that is beneficial to a large number of users in decision making.b) Financial statements prepared for this purpose meet the common needs of most users.However, the financial statements do not provide all the information the user needs in economic decision making as it generally describes the financial effects of past activities, and is not required to provide financial information.
c) The financial statements indicate what management has done, or management's liability for the resources entrusted to it.Users who want to assess what has been done or accountable.Management does so in order to meet their economic decisions.

5) Limitations of Financial Statements
According Munawir (2004: 6), states that the financial statements are historical and comprehensive and as a progress report.
The financial statements consist of data which results from a combination of recorded facts, principles, and habits in accounting and personal opinion.
Limitations of financial statements according to Harahap (2004: 17-18), are: a) The financial statements are historical, which is a report on past events.Hence the financial statements cannot be considered as the only source of information in the economic decision-making process, let alone to forecast the future of the value of the company today.b) The financial statements are general and do not want to meet the needs of certain parties or special parties as the buyers.c) The process of preparing the financial statements does not escape the use of estimates and various considerations.d) Financial statements prepared by technical terms and users of financial statements are assumed to understand the technical language of accounting and the nature of the information reported.
e) The existence of various alternative accounting methods that can be used to cause variations in the measurement of economic resources and the level of success between companies.inventory valuation methods may use LIFO, FIFO, and Average Similarly depreciation method: straight line, declining balance, Sum of Year Digit and so on.

c. The notion of Ratio
Ratio is a tool that can be used to explain the relationship between two kinds of financial data.The ratio describes a relationship or balance (mathematical relationship) between a certain amounts to another amount (Munawir, 2000: 54).The actual ratio is only the tool stated in the arithmetical terms that can be used to explain the relationship between two kinds of financial data (Bambang Riyanto, 2001: 329).
Financial ratios represent information that describes the relationship between the various accounts (accounts) of financial statements that reflect the financial condition and the results of the company's operations.In this study the authors limit using only a few ratios of the existing profitability ratios, among others: 1) Return on Equity (ROE) Return on Equity (ROE) is one way to calculate the efficiency of a company by comparing the profit available to the owner of the capital itself with the amount of own capital that generates the profit.According to Agus Sartono (2003: 123) ROE is a measure of the ability of a company to obtain profits available to shareholders of the company.This ratio is influenced by the size of the company's capital, the greater the capital proportion then the better ROE as well.

ROE =
Net profit after tax x 100% Total Equity 2) Return on Asset (ROA) Return on Assets (ROA) is the ratio used to measure the effectiveness of companies in generating profits by utilizing the assets they have (Febrianti, 2014).ROA or ROI is obtained by comparing the net income after tax (NIAT) to average total assets.The greater the profits of the company would be the dividend as the income is paid even greater.

4) Return on Investment (ROI)
Return on Investment (ROI) is a ratio that measures the ability of the company with the overall funds invested in the assets used for the company's operations in an attempt to generate profits.Mulyadi (2001: 440), argued that the ROI is the ratio of earnings with the investment used to

Pendapatan
In formula 1, for the measurement of profit center performance, the profit to be earned by a profit center within a given time period divided by the investment which will be used for the earnings.Formula 2, both investment and profit are calculated by revenue.to run a business.Therefore, if the company gets a lot of profits it may not be able to pay dividends because of its liquidity.In this situation the company may decide not to pay dividends in cash.c) Pay the loan If the company obtains a loan to expand the company, then the company can repay the loan.d) Loan contract Short-term or long-term loan contracts often limit the company's ability to repay loans.e) Restrictions on prefern shares If the dividend oemegang prefern share has not been paid then the dividend payout to ordinary shareholders can not be done.f) The need for funds for investment A growing company always needs new funds to invest in profitable projects.In this case management tend to prefer to use retained earnings because the utilization of retained earnings does not require flotation cost.g) Fluctuations in earnings If the company fluctuates in a smaller dividend it is done to maintain the stability of dividend payments.With fluctuating profits the company also does not use much debt as a source of funding, this is done to reduce the risk of bankruptcy.

e. Effect of Financial Performance on
Dividend Payout Ratio The financial performance of the company is very influential on the dividend payout.This can be seen from the dividend policy that is highly dependent on financial performance especially seen from the ratio of profitability.Dividend policy is important information for shareholders to see the financial performance of a company itself.

Research Conducted
The research conducted by the authors refers to research conducted by: The first study that is from research Sulhan Faris (2012) with the title Analysis Influence of Financial Ratio and Non-Financial Ratios To Policy Dividend Payout Ratio (Study on Manufacturing Companies Listed on BEI period 2008BEI period -2010 ) ).In this research, Liquidity and Profitability variable have positive and significant effect to dividend payout ratio.
The Growth variable shows a negative and significant influence on the dividend payout ratio.Firm size variable has positive and not significant effect on dividend payout ratio.The insider ownership variable shows the negative and significant influence on the dividend payout ratio and the instituonal ownership variable has a negative and insignificant effect on the dividend payout ratio.The third study is Nuriyatul Mashumah (2015) entitled Factors Affecting Dividend Payout Ratio In Companies That Enter In List Of Sharia Securities.In this research found that together regression model can be used to explain the relationship between earnings per share, size, growth, dept to equity ratio, return on assets and cash ratio to dividend payout ratio.Partially variable earning per share, dept to equity ratio and cash ratio have influence and negative relation to dividend payout ratio.Variable size and return on assets have no effect on dividend payout ratio but have a positive relationship.While the variable growth has no effect and has a negative relationship with devidend payout ratio.

Theoretical Framework
The systematic framework in this research can be described as follows:   Based on the test results in table 4.3 above shows the acquisition of sigma K-S (value α) from Kolmogorov Smirnov test results note that the significance value of 0.616 is greater than 0.05, so it can be concluded that the data we tested normally distributed.

Test of Multicollonearity
To detect the presence or absence of symptoms of multicollonearity between independent variables used Variance Inflation Factor (VIF) and Tolerance.Based on the test results in Table 4.6 above note that the value of Asymp.Sig.(2-tailed) of 0.544> greater than 0,05, it can be concluded that there are no symptoms or problems of autocorrelation.

Multiple Linear Regression Test
The results of this calculation explain the closeness of the relationship between ROA, ROE, ROI and NPM variables with DPR variables.The rresult of the data if using SPSS V 16.0 obtained multiple correlation values and other measures as follows:

Hypothesis Testing Results
The results of multiple linear regression calculations above cannot be used as the basis of conclusions, therefore required a test of the significance of the model, either partially or simultaneously.a) Test t (Partial effect test) The hypothesis of the t test are: Ho: r₁ = 0 There is no significant influence between ROA on DPR.Ha: r₁ ≠ 0 There is a significant influence between ROA on DPR.Ho: r₁ = 0 There is no significant influence between ROE on DPR.Ha: r₁ ≠ 0 There is a significant influence between ROE on DPR.Ho: r₁ = 0 There is no significant influence between ROI and DPR.Ha: r₁ ≠ 0 There is a significant influence between ROI and DPR.Ho: r₁ = 0 There is no significant influence between NPM on DPR.Ha: r₁ ≠ 0 There is a significant influence between NPM on DPR.
The level of confidence used is 95% then the value of α = 0.05.ts can be concluded the value of R Square 0.283 is less close to 1, then the effect of X to Y is not large.

a) Return On Assets
The first hypothesis states that the return on assets have a significant positive effect on the DPR.Testing this hypothesis shows that the variable ROA has no significant effect on the House.b) Return On Equity The second hypothesis states that the return on equity has a significant positive effect on the DPR.From the results of hypothesis testing using t test obtained value t arithmetic -0.371 < t table 2.02108 and significant value of 0.713 > 0.05.Means there is no significant effect between the change of ROE variable to the variable change of DPR so that the hypothesis is rejected.c) Return On Investment The third hypothesis states that the return on investment has a significant positive effect on the DPR.From the results of hypothesis testing using t test obtained significance value of 0.008 smaller than the value of 0.05 so that this hypothesis is accepted.d) Net Profit Margin The fourth hypothesis states that Net Profit Margin has a significant positive effect on DPR.From the results of hypothesis testing using t test obtained significant value of 0.384 greater than 0.05.Means there is no significant influence between the change of NPM variables to changes in DPR variables, so the hypothesis is rejected.
The fifth hypothesis states that there is a significant influence of Return On Assets, Return On Equity, Return On Investment and Net Profit Margin to Dividend Payout Ratio simultaneously.From the results of hypothesis testing using F test and determination test obtained value significance 0.009 smaller than α = 0.05, then than the hypothesis accepted.The results of this study showed that ROA, ROE, ROI and NPM together (simultaneously) have a significant effect on House of Representatives by 28.3%.While the rest (100% -28.3% = 71.7%) is influenced by other variables beyond this regression model.

CONCLUSIONS AND SUGGESTIONS 5.1 Conclusion
a. Based on the results of the first hypothesis testing, it showed partially that ROA has no significant effect on the House, where the value of significance of 0.136 is greater than the value of 0.05 so that this hypothesis is rejected.b.Based on the results of the second hypothesis testing, showed partially that ROE has no significant effect on the House, where the value of t arithmetic -0.371 smaller than t table 2.02108 and significant value of 0.713 greater than 0.05 so the hypothesis is rejected .c. Based on the results of the third hypothesis testing, ROI showed a significant positive partial effect on the House, which obtained a significance value of 0.008 smaller than the value of 0.05 so that this hypothesis is accepted.d.Based on the results of the fourth hypothesis testing, it showed partially that NPM has no significant effect on Parliament, where the value of significant value of 0.384 is greater than 0.05 so the hypothesis is rejected.e.Based on the results of the fifth hypothesis testing, in the simultaneous F test and the determination test shows

Figure
Figure 2.1 Theoretical Framework