Profitability and Dividend Policy in State-Owned Telecommunications: Evidence from PT Telkom Indonesia
Keywords:
Return on Equity, Return on Assets, Dividend Payout Ratio, Dividend Policy, State-Owned Enterprise, TelecommunicationsAbstract
This study examines the partial and simultaneous effects of Return on Equity (ROE) and Return on Assets (ROA) on Dividend Payout Ratio (DPR) at PT Telkom Indonesia (Persero) Tbk over the 2014–2021 period. A quantitative single-firm case design is employed using purposive-sampled audited annual financial statements (n = 8). Simple and multiple linear regression are applied, preceded by Shapiro–Wilk normality testing, Glejser heteroscedasticity testing, and Tolerance/VIF multicollinearity diagnostics. In the simple models, ROE exerts a significant negative partial effect on DPR and ROA also exerts a significant negative partial effect. In the simultaneous model, the overall F-test remains significant, but the ROA coefficient becomes positive and statistically non-significant; this joint specification is therefore interpreted cautiously because the sample is very small and ROE and ROA share substantial common variance. Rather than claiming broad theory extension, the study offers focused case evidence that, in a capital-intensive state-owned enterprise telecommunications context, higher profitability may coincide with earnings retention rather than higher payout. For investors, rising ROE or ROA should not be read mechanically as a leading indicator of a higher DPR. Because the design uses one firm and only eight annual observations, the findings should be treated as contextual evidence; future research should use multi-firm panels, longer time horizons, and additional controls such as leverage, liquidity, and ownership structure.
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