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 109
- Downloads 0
DEBT AND AGENCY CONFLICT IN INDONESIAN MANUFACTURING FIRMS
Companies in Indonesia have shareholders who are not dispersed or in other words, the ownership is only held by one majority shareholder. This study examined the effects of an investment decision on the firm value and th...
CONFIRMATION BIAS, SELF-ATTRIBUTION BIAS, DAN OVERCONFIDENCE DALAM TRANSAKSI SAHAM
Overconfidence caused investors to overestimate their knowledge, underestimate risk and exaggerate their ability to control events. This led to excessive trading, unwarranted risk-taking, and ultimately, financial losses...
Determinants of capital structure in Sharia criteria manufacturing firms on the Indonesia Stock Exchange
Theories and results of research on the determinants of a firm’s capital structure provide different explanations and evidence. Sharia criteria companies on the Indonesia Stock Exchange (IDX) are not allowed to have a ra...
DETERMINAN INTERNAL DIVIDEND PAYOUT RATIO PERUSAHAAN FARMASI TERDAFTAR DI BURSA EFEK INDONESIA
This study aimed to examine and analyze the effect of the internal determinant of dividend payout ratio pharmaceutical company, annual data observation period 2008 until 2014. The type of this study was quantitative rese...
Do Financial Constraints Moderate the Impact of Financing Decisions From Internal-financing Sources on Investment?
To prevent investment growth from 2013 to 2015 from decreasing, the Industrial Ministry provided fiscal incentives to stimulate investment-growth. Nevertheless, the investment growth of manufacturing firms still declined...