Accuracy of cash flow of high and low technology industry in predicting future dividends in manufacturing companies listed in Indonesia Stock Exchange for 2016-2018
List of Authors
  • Erita Rosalina , Suhaidar

Keyword
  • cash flow, high tech companies, low tech company, future dividend, Absolute Percentage Error (APE)

Abstract
  • This research aims to examine the accuracy of cash flow in high and low technology companies to forecast the future dividend on listed manufacture industries in Indonesia Stock Exchange in the period 2016-2018. This research used the independent variable; cash flow of high and low technology industries and dependent variable; future dividend. This research used a quantitative method with a population of 144 manufacturing companies listed on the Indonesia Stock Exchange in the period 2016-2018 accessed through the official website of the Indonesia Stock Exchange. The sampling technique used was purposive sampling by using the predetermined criterion to take the samples of 28 companies. The research instrument testing used descriptive statistical analysis methods, classic assumption tests, simple linear regression, absolute percentage error (APE) analysis, and independent t-test. The result showed that high technology companies have a greater dividend value than low technology companies’ dividends. The result also showed that the forecasting error rate of the cash flow of high technology companies is greater than low tech companies. The results of the independent t-test can be conclude that the company’s cash flow criteria for low technology are more accurate the the high technology companies in forecasting future dividends.

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