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Introduction: The purpose of this study is to examine the effect of financial performance on dividend policy and investigate the moderating role of firm size on the relationship between financial performance and dividend policy. Literature Review: The influence of financial performance on dividend policy signaling theory Bhattacharya (1979) is about how companies should signal to report users, in the form of information about what the manager has done in realizing the owner’s desires. Methods: This study was an explanatory study. The unit of analysis was the company’s property and real estate listed in Indonesian Stock Exchange and the sources of data were, annual report and financial reports of the companies. Indonesian Stock Exchange was selected as the setting of the study since Indonesian Stock Exchange is one of trading places for various types of companies in Indonesia, and it provides complete information on company’s financial data and stock price. The population was 84 companies’ property and real estate listed in Indonesian Stock Exchange between 2017 to 2022. Result and Discussion: First, Financial performance has a significant and positive relationship to dividend policy; second firm size has a moderating effect on the relationship between financial performance and dividend policy. Conclusion: The novelty in this study is the moderation of firm size on the relationship between financial performance and dividend policy.
Ontorael et al. (Thu,) studied this question.