The Determinants of Dividend Policy: A Study of Financial Industry in Indonesia
Journal Title: Jurnal Keuangan dan Perbankan - Year 2017, Vol 21, Issue 4
Abstract
Dividend policy is still a controversial issue and often debated in the literature of corporate finance. Previous literature has examined that companies pay a dividend is to attract investors to buy their companies shares. The question, what are the determinants of the company’s dividend policy? The purpose of this study is to find out the determinants of dividend policy in the financial industry listed in Indonesia Stock Exchange. This study uses a panel data analysis method to investigate the determinants of dividend policy (corporate governance mechanism, profitability, systematic risk, firm size, and leverage) in Indonesia Stock Exchange which sample was taken from 17 companies by using purposive sampling technique from the period of 2009-2015. The empirical result shows that profitability, leverage, and institutional ownership have a negative impact on the firm’s dividend policy. This study revealed that systematic risk, firm size, and board of directors have no impact on the firm’s dividend policy.
Authors and Affiliations
Gusni Gusni
Keywords
Related Articles
- EP ID EP418372
- DOI -
- Views 103
- Downloads 0
Macroeconomic variables towards net asset value of sharia mutual funds in Indonesia and Malaysia
Sharia mutual fund as one of the investment instruments in the sharia capital market shows significant development. There are various factors that may influence, among these factors are macroeconomic variables. This rese...
PENGUKURAN KESEHATAN BANK SYARIAH DENGAN SHARIA COMPLIENCE AND PERFORMANCE
The purpose of this study was to measure the health of Islamic banks which were not only based on financial performance (CAMEL), but also included the performance of sharia. The financial performance was measured by the...
Is Investment Policy Value-Enhancing through CSR Disclosure?
This study aims to analyze the effect of funding policy, dividend, and investment on firm value and the influence of corporate social responsibility (CSR) disclosure as moderating variable in the relationship between inv...
QUALITY OF FINANCIAL CONGLOMERATES’ PERFORMANCE IN EMERGING ECONOMY: THE INDUSTRIAL ORGANIZATION THEORY PERSPECTIVE
Financial conglomerates are financial institutions that provide all forms of financial services on the top of ordinary banking service. The quality of financial conglomerates’ performance depends on a number of factors n...
Dividend policy, investment opportunity set, free cash flow, and company performance: Indonesian’s agricultural sector
Dividends are a tool that can be an essential source of information for investors or other stakeholders as it contains information that can provide a signal about the company's prospects (dividend signaling theory). This...