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The purpose of this paper is to analyze the variables that significantly affect dividend policy.

This research uses a type of comparative causal research (causal-comparative research), where the fact or event is identified as an influenced variable (dependent variable) and the variables that influence (independent variable) are investigated. In this study, the authors want to examine the effect of collateralizable assets, growth in net assets, liquidity, leverage and profitability of dividend policy by using quantitative approach. The data used are secondary data obtained from Indonesia Stock Exchange website with website address: www.idx.co.id.

The results showed that collateralizable assets have a negative, but not significant, effect on dividend policy. This shows that the high collateralizable assets do not affect the policy of the dividend of manufacturing companies. The second variable, growth in net assets, has a negative and significant effect on dividend policy. This shows that the higher growth in net assets will lower the dividend policy of manufacturing companies. Furthermore, the results show that liquidity has a negative and significant effect on dividend policy. This indicates that higher liquidity will lower the dividend policy of manufacturing companies. Furthermore, result that leverage has a negative and significant effect on dividend policy is obtained. This suggests that the higher leverage will lower the dividend policy of the manufacturing company. And lastly, profitability has a negative, but not significant, effect on dividend policy. This shows that high profitability does not affect dividend policy of manufacturing companies.

The authors contribute to prior research by providing the empirical evidence on the impact of collateralizable assets, growth in net assets, liquidity, leverage and profitability on dividend policy in Indonesia market as an emerging market.