Does Corporate Governance Affect Dividends? Case Study in Indonesia Stock Exchange and Malaysia Stock Exchange
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Keywords:
Female Directors, Dividend Payout Ratio, Board Independent, Board Size, Board Meetings
Abstract
Abstract – This study aims to analyze the effect of good corporate governance such as the number of commissioners, the number of commissioner meetings, the number of female commissioners, the independent commissioners on the dividend payout ratio in manufacturing companies listed on the Indonesia Stock Exchange and the Malaysia Stock Exchange. Malaysia was chosen because has a dividend payout rate close to Indonesia. This research uses a quantitative approach using multiple linear regression methods. The research used objects of 435 observations on the Indonesia Stock Exchange and 530 observations on the Malaysia Stock Exchange. The independent variables used are independent commissioners, board of commissioners meetings, size of commissioners, female commissioners. The results of the study using observations on the Indonesia Stock Exchange found that independent commissioners have a significant positive effect while the rest have an insignificant effect on the dividend payout ratio. Meanwhile, the results of the study using observations on the Bursa Malaysia found that the size of the commissioners and board of commissioners' meetings had a significant negative effect on the dividend payout ratio. Meanwhile, independent commissioners and female commissioners have a significant positive effect on the dividend payout ratio.
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References
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Bokpin, G. A. (2011). Ownership structure, corporate governance and dividend performance on the Ghana Stock Exchange. Journal of Applied Accounting Research, 12(1), 61-73. doi:10.1108/09675421111130612
Cahyadi, R. T., Purwanti, L., & Mardiati, E. (2018). Pengaruh Profitabilitas, Dewan Komisaris, Komisaris Independen Dan Risiko Idiosinkratis Terhadap Dividend Payout Ratio. Jurnal Economia, 14(1), 99. doi:10.21831/economia.v14i1.19404
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Ellyanti, & Setyawan, I. R. (2019). Peran Diversitas Gender Terhadap Pengambilan Keputusan Pendanaan Pada Perusahaan Indeks Kompas 100. Jurnal Manajerial Dan Kewirausahaan, 1(3), 420-429. Retrieved from https://journal.untar.ac.id/index.php/JMDK/article/view/5352/3401
Elmagrhi, M., Ntim, C., Crossley, R., Malagila, J., Fosu, S. & Vu, T. (2017), Corporate governance and dividend pay-out policy in UK listed SMEs: The effects of corporate board characteristics, International Journal of Accounting & Information Management, 25(4), 459-483. https://doi.org/10.1108/IJAIM-02-2017-0020
Hadamean, V., & Ratmono, D. (2019). Pengaruh Tata Kelola Perusahaan, Struktur Kepemilikan, dan Profitabilitas Terhadap Kebijakan Dividen di Indonesia. Diponegoro Journal of Accounting, 8(4), 1. Retrieved from https://ejournal3.undip.ac.id/index.php/accounting/article/view/25855
Handoko, J. (2002). Pengaruh Agency Costs Terhadap Kebijakan Dividen Perusahaan-Perusahaan Go Public di bursa Efek Jakarta. Jurnal Widya Manajemen Dan Akuntansi, 2(3), 180-190. Retrieved from http://journal.wima.ac.id/index.php/JWMA
Kaźmierska-Jóźwiak, B. (2015). Determinants of Dividend Policy: Evidence from Polish Listed Companies. Procedia Economics and Finance, 23, 473–477. https://doi.org/10.1016/s2212-5671(15)00490-6
Kamel, I. T. (2017). Faktor - Faktor yang Mempengaruhi Dividen Perusahaan Non-Keuangan yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015. Jurnal Ilmiah Mahasiswa Universitas Surabaya, 6(2), 1176-1193. Retrieved from https://journal.ubaya.ac.id/index.php/jimus/article/view/1046
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Masruroh, R. N., Wijaya, A. L., & Widiasmara, A. (2019). Pengaruh Corporate Governance, Free Cash Flow dan Investment Opportunity Set Terhadap Dividend Payout Ratio (Studi Pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Pada Tahun 2012-2018). SEMINAR INOVASI MANAJEMEN, BISNIS DAN AKUNTANSI, 1. Retrieved from http://prosiding.unipma.ac.id/index.php/SIMBA/article/download/1171/885
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Murhadi, W. R. (2010). Study on Dividend Policy: Antecedent and its Impact on Share Price. SSRN Electronic Journal. doi:10.2139/ssrn.1686109
Putra, E. D., & Adrianto, F. (2019). Analisis Perbandingan Profitability, Effective Governance and Firm Market Value pada Perusahaan ESG/SRI (Studi Empiris Perusahaan Besar di Indonesia). Jurnal Ilmiah Mahasiswa Ekonomi Manajemen, 4(4), 753-772. https://doi.org/10.24815/jimen.v4i4.13007
Sanan, N. (2019), Impact of board characteristics on firm dividends: evidence from India, Corporate Governance, 19(6), 1204-1215. https://doi.org/10.1108/CG-12-2018-0383
Sani, A. A., & Musa, A. M. (2017). Corporate Board Attributes and Dividend Payout Policy of Listed Deposit Money Banks in Nigeria., International Journal of Research in IT, Management and Engineering, 7 (1), 7-13. https://ssrn.com/abstract=2910268
Seputro, F. H., Murhadi, W. R., & Herlambang, A. (2020). Faktor – Faktor Yang Mempengaruhi Dividend Perusahaan Sektor Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Dan Bursa Malaysia. Journal of Entrepreneur & Business, 1(1), 45. doi:10.24123/jerb.v1i1.2823
Sumartha, E. (2016), Pengaruh Struktur Kepemilikan Terhadap Kebijakan Dividen pada Perusahaan Manufaktur. Jurnal Economia¸12(2), 167 – 182. Retrieved from https://media.neliti.com/media/publications/77194-ID-pengaruh-struktur-kepemilikan-terhadap-k.pdf
Triwulan, H., & Wahidahwati. (2012). Pengaruh Struktur corporate Governance dan Keputusan keuangan Terhadap Kebijakan Deviden dan Nilai Perusahaan. Jurnal Ilmu & Riset Akuntansi, 1(12). Retrieved from http://garuda.ristekbrin.go.id/documents/detail/524442
Yarram, S. R., & Dollery, B. (2015). Corporate governance and financial policies: influence of board characteristics on the dividend policy of Australian firms. Managerial Finance, 41(3), 267-285. https://doi.org/10.1108/MF-03-2014-0086
Ye, D., Deng, J., Liu, Y., Szewczyk, S. H., & Chen, X. (2019). Does board gender diversity increase dividend payouts? Analysis of global evidence. Journal of Corporate Finance, 58, 1-26. doi:10.1016/j.jcorpfin.2019.04.002
Arko, A. C., Abor, J., Adjasi, C. K., & Amidu, M. (2014). What influence dividend decisions of firms in Sub-Saharan African? Journal of Accounting in Emerging Economies, 4(1), 57-78. doi:10.1108/jaee-12-2011-0053
Benjamin, S. and Zain, M. M. (2015), Corporate governance and dividends payout: are they substitutes or complementary?, Journal of Asia Business Studies, 9(2), 177-194. https://doi.org/10.1108/JABS-08-2014-0062
Bokpin, G. A. (2011). Ownership structure, corporate governance and dividend performance on the Ghana Stock Exchange. Journal of Applied Accounting Research, 12(1), 61-73. doi:10.1108/09675421111130612
Cahyadi, R. T., Purwanti, L., & Mardiati, E. (2018). Pengaruh Profitabilitas, Dewan Komisaris, Komisaris Independen Dan Risiko Idiosinkratis Terhadap Dividend Payout Ratio. Jurnal Economia, 14(1), 99. doi:10.21831/economia.v14i1.19404
Chen, J., Leung, W. S., & Goergen, M. (2016). The Impact of Board Gender Composition on Dividend Payouts. SSRN Electronic Journal. doi:10.2139/ssrn.2849529
Ellyanti, & Setyawan, I. R. (2019). Peran Diversitas Gender Terhadap Pengambilan Keputusan Pendanaan Pada Perusahaan Indeks Kompas 100. Jurnal Manajerial Dan Kewirausahaan, 1(3), 420-429. Retrieved from https://journal.untar.ac.id/index.php/JMDK/article/view/5352/3401
Elmagrhi, M., Ntim, C., Crossley, R., Malagila, J., Fosu, S. & Vu, T. (2017), Corporate governance and dividend pay-out policy in UK listed SMEs: The effects of corporate board characteristics, International Journal of Accounting & Information Management, 25(4), 459-483. https://doi.org/10.1108/IJAIM-02-2017-0020
Hadamean, V., & Ratmono, D. (2019). Pengaruh Tata Kelola Perusahaan, Struktur Kepemilikan, dan Profitabilitas Terhadap Kebijakan Dividen di Indonesia. Diponegoro Journal of Accounting, 8(4), 1. Retrieved from https://ejournal3.undip.ac.id/index.php/accounting/article/view/25855
Handoko, J. (2002). Pengaruh Agency Costs Terhadap Kebijakan Dividen Perusahaan-Perusahaan Go Public di bursa Efek Jakarta. Jurnal Widya Manajemen Dan Akuntansi, 2(3), 180-190. Retrieved from http://journal.wima.ac.id/index.php/JWMA
Kaźmierska-Jóźwiak, B. (2015). Determinants of Dividend Policy: Evidence from Polish Listed Companies. Procedia Economics and Finance, 23, 473–477. https://doi.org/10.1016/s2212-5671(15)00490-6
Kamel, I. T. (2017). Faktor - Faktor yang Mempengaruhi Dividen Perusahaan Non-Keuangan yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015. Jurnal Ilmiah Mahasiswa Universitas Surabaya, 6(2), 1176-1193. Retrieved from https://journal.ubaya.ac.id/index.php/jimus/article/view/1046
Kusumastuti, S., S., & Sastra, P. (2007). Pengaruh Board Diversity Terhadap Nilai Perusahaan dalam Perspektif Corporate Governance. Jurusan Ekonomi Akuntansi, Fakultas Ekonomi, 9(2)., 88-98. Retrieved from http://puslit2.petra.ac.id/ejournal/index.php/aku/article/download/16819/16802
Lopolusi, I. (2013). Analisis Faktor-Faktor yang Mempengaruhi Kebijakan Dividen Sektor Manufaktur yang Terdaftar di PT Bursa Efek Indonesia Periode 2007-2011. Jurnal Ilmiah Mahasiswa Univeersitas Surabaya, 2(1). Retrieved from http://journal.ubaya.ac.id/index.php/jimus/article/view/339
Malik, M. S., & Makhdoom, D. D. (2016). Does corporate governance beget firm performance in Fortune Global 500 companies? Corporate Governance: The International Journal of Business in Society, 16(4), 747-764. doi:10.1108/cg-12-2015-0156
Masruroh, R. N., Wijaya, A. L., & Widiasmara, A. (2019). Pengaruh Corporate Governance, Free Cash Flow dan Investment Opportunity Set Terhadap Dividend Payout Ratio (Studi Pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Pada Tahun 2012-2018). SEMINAR INOVASI MANAJEMEN, BISNIS DAN AKUNTANSI, 1. Retrieved from http://prosiding.unipma.ac.id/index.php/SIMBA/article/download/1171/885
Murhadi, W. R., & Liliana, I. W. (2011). Studi pengaruh good corporate governance, analyst coverage, dan tahapan daur hidup terhadap kebijakan deviden. Manajemen & Bisnis, 10(1), 111-126. https://doi.org/10.24123/jmb.v10i1.178.
Murhadi, W. R. (2010). Study on Dividend Policy: Antecedent and its Impact on Share Price. SSRN Electronic Journal. doi:10.2139/ssrn.1686109
Putra, E. D., & Adrianto, F. (2019). Analisis Perbandingan Profitability, Effective Governance and Firm Market Value pada Perusahaan ESG/SRI (Studi Empiris Perusahaan Besar di Indonesia). Jurnal Ilmiah Mahasiswa Ekonomi Manajemen, 4(4), 753-772. https://doi.org/10.24815/jimen.v4i4.13007
Sanan, N. (2019), Impact of board characteristics on firm dividends: evidence from India, Corporate Governance, 19(6), 1204-1215. https://doi.org/10.1108/CG-12-2018-0383
Sani, A. A., & Musa, A. M. (2017). Corporate Board Attributes and Dividend Payout Policy of Listed Deposit Money Banks in Nigeria., International Journal of Research in IT, Management and Engineering, 7 (1), 7-13. https://ssrn.com/abstract=2910268
Seputro, F. H., Murhadi, W. R., & Herlambang, A. (2020). Faktor – Faktor Yang Mempengaruhi Dividend Perusahaan Sektor Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Dan Bursa Malaysia. Journal of Entrepreneur & Business, 1(1), 45. doi:10.24123/jerb.v1i1.2823
Sumartha, E. (2016), Pengaruh Struktur Kepemilikan Terhadap Kebijakan Dividen pada Perusahaan Manufaktur. Jurnal Economia¸12(2), 167 – 182. Retrieved from https://media.neliti.com/media/publications/77194-ID-pengaruh-struktur-kepemilikan-terhadap-k.pdf
Triwulan, H., & Wahidahwati. (2012). Pengaruh Struktur corporate Governance dan Keputusan keuangan Terhadap Kebijakan Deviden dan Nilai Perusahaan. Jurnal Ilmu & Riset Akuntansi, 1(12). Retrieved from http://garuda.ristekbrin.go.id/documents/detail/524442
Yarram, S. R., & Dollery, B. (2015). Corporate governance and financial policies: influence of board characteristics on the dividend policy of Australian firms. Managerial Finance, 41(3), 267-285. https://doi.org/10.1108/MF-03-2014-0086
Ye, D., Deng, J., Liu, Y., Szewczyk, S. H., & Chen, X. (2019). Does board gender diversity increase dividend payouts? Analysis of global evidence. Journal of Corporate Finance, 58, 1-26. doi:10.1016/j.jcorpfin.2019.04.002
Published
2022-01-04
How to Cite
Hermawan, B. W., Murhadi, W. R., & Ernawati, E. (2022). Does Corporate Governance Affect Dividends? Case Study in Indonesia Stock Exchange and Malaysia Stock Exchange. Journal of Entrepreneurship and Business, 3(1), 14-23. https://doi.org/10.24123/jeb.v3i1.4702
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