Ownership Structure on Dividend Policy in The Indonesian Stock Exchange
DOI:
Abstract Views:
640 times
PDF Downloads:
509 times
Abstract
Purpose: This research analyses how ownership structure affects dividend policy.
Method: Quantitative with a pool least square (PLS) regression model was used as a research method, and the research sample was drawn from all non-financial sector companies registered in IDX from 2017 to 2021. Independent variables such as family ownership, institutional ownership, and concentration ownership. This research also has a control variable such as return on assets, debt to equity ratio, firm size, firm age, free cash flow, and volatility (business risk).
Result: This research found that family ownership, institutional ownership, concentration ownership, return on assets, firm size, age of firm, free cash flow, and volatility (business risk) all have a significant effect on dividend yield, but the debt to equity ratio has no effect.
Downloads
References
ACGA. (2020). CG Watch 2020: Future Promise. A. C. G. Association. https://www.acga-asia.org/cgwatch.php
Ahmad, G. N., Dewi, F. A., & Mardiyati, U. (2016). The Influence Of Market To Book Value, Annual Tax, And Risk Towards Dividend Policy In Banking Company Listed In Indonesia Stock Eexchange (Idx) Period 2010-2014. JRMSI-Jurnal Riset Manajemen Sains Indonesia, 7(1), 157-175.
Asali, F., Murhadi, W., & Sutejo, B. (2020). The effect of corporate governance and financial factors on dividend payment. Contemporary Research on Business and Management: Proceedings of the International Seminar of Contemporary Research on Business and Management (ISCRBM 2019), 27-29 November, 2019, Jakarta, Indonesia
Baker, H. K., Dam, L., & De Ridder, A. (2021). Payouts and stock ownership. Journal of Multinational Financial Management, 60, 100684.
Chang, K., Kang, E., & Li, Y. (2016). Effect of institutional ownership on dividends: An agency-theory-based analysis. Journal of Business Research, 69(7), 2551-2559.
Duygun, M., Guney, Y., & Moin, A. (2018). Dividend policy of Indonesian listed firms: The role of families and the state. Economic Modelling, 75, 336-354.
Ginting, S. (2018). Pengaruh Likuiditas, Profitabilitas. Dan Leverage Terhadap Kebijakan Deviden Pada Perusahaan Lq45 Yang Terdaftar Di Bursa Efek Indonesia Periode 2012-2016. Jurnal Wira Ekonomi Mikroskil, 8(2), 195-204.
Gunawan, K. E., Murhadi, W. R., & Herlambang, A. (2019). Pengaruh Good Corporate Governance (GCG) terhadap Kebijakan Dividen pada Saham Perusahaan Sektor Non-Keuangan yang Terdaftar di BEI Periode 2012-2016. CALYPTRA, 7(2), 2961-2979.
Hasan, M. B., Wahid, A. N., Amin, M. R., & Hossain, M. D. (2023). Dynamics between ownership structure and dividend policy: evidence from Bangladesh. International Journal of Emerging Markets, 18(3), 588-606.
Isakov, D., & Weisskopf, J.-P. (2015). Pay-out policies in founding family firms. Journal of Corporate Finance, 33, 330-344.
Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American economic review, 76(2), 323-329.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
Khan, A. (2022). Ownership structure, board characteristics and dividend policy: evidence from Turkey. Corporate Governance: The international journal of business in society, 22(2), 340-363.
La Porta, R., Lopez‐de‐Silanes, F., Shleifer, A., & Vishny, R. W. (2000). Agency problems and dividend policies around the world. The journal of finance, 55(1), 1-33.
Liang, S., Niu, Y., Yang, D., & Liu, X. (2023). Nanjing: Dividend payouts under a societal crisis: Financial constraints or signaling?. International Review of Financial Analysis, 102705.
Lin, X., Huang, H. Y., & Lee, Y. C. (2023). Proxy solicitation, ownership structure, and bank cash dividends. Economic Analysis and Policy, 78, 15-23.
Mehdi, M., Sahut, J.-M., & Teulon, F. (2017). Do corporate governance and ownership structure impact dividend policy in emerging market during financial crisis? Journal of applied accounting research.
Murhadi, W. R. (2010). Study on dividend policy: antecedent and its impact on share price. Available at SSRN 1686109.
Pettenuzzo, D., Sabbatucci, R., & Timmermann, A. (2023). Dividend suspensions and cash flows during the Covid-19 pandemic: A dynamic econometric model. Journal of econometrics.
Reyna, J. M. S. M. (2017). Ownership structure and its effect on dividend policy in the Mexican context. Contaduría y Administración, 62(4), 1199-1213.
Rozeff, M. S. (1982). Growth, beta and agency costs as determinants of dividend payout ratios. Journal of financial Research, 5(3), 249-259.
Setiawan, D., Bandi, B., Phua, L. K., & Trinugroho, I. (2016). Ownership structure and dividend policy in Indonesia. Journal of Asia Business Studies, 10(3), 230-252.
Shleifer, A., & Vishny, R. W. (1986). Large shareholders and corporate control. Journal of political economy, 94(3, Part 1), 461-488.
Sutanto, J., Marciano, D., & Ernawati, E. (2018). Pengaruh Kepemilikan Institusional Terhadap Kebijakan Dividen Pada Perusahaan Sektor Industri Property, Real Estate, Dan Konstruksi Bangunan Yang Terdaftar Di Bei Periode 2011-2015. CALYPTRA, 6(2), 966–981-966–981.
Tawfik, O. I., Alsmady, A. A., Rahman, R. A., & Alsayegh, M. F. (2022). Corporate governance mechanisms, royal family ownership and corporate performance: evidence in gulf cooperation council (GCC) market. Heliyon, 8(12).
Tayachi, T., Hunjra, A. I., Jones, K., Mehmood, R., & Al-Faryan, M. A. S. (2021). How does ownership structure affect the financing and dividend decisions of firm? Journal of Financial Reporting and Accounting.
Valentina, C., Wijaya, L. I., & Ernawati, E. (2022). The effect of ownership structure on dividend policy of manufacturing companies. Manajemen dan Bisnis, 21(2), 96-102.
Wirata, W., Murhadi, W. R., & Ernawati, E. (2017). Faktor-Faktor yang Mempengaruhi Kebijakan Dividen Badan Usaha-Badan Usaha Sektor Industri Barang Konsumsi yang Terdaftar Di Bei Periode 2010-2014. CALYPTRA, 6(1), 866-885.
Wulandari, S., Ambarita, N. P., & Darsono, M. D. P. W. (2019). Pengaruh Free cash flow, Kepemilikan Institusional, Profitabilitas dan Leverage Tehadap Kebijakan Dividen Tunai Pada Perusahaan Property dan Real estate yang Terdaftar di Bursa Efek Indonesia. Akuisisi, 15(2), 26-34.
Yoshikawa, T., & Rasheed, A. A. (2010). Family control and ownership monitoring in family‐controlled firms in Japan. Journal of Management Studies, 47(2), 274-295.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Articles published in Journal of Entrepreneurship & Business are licensed under a Creative Commons Attribution 4.0 International (CC BY) license. You are free to copy, transform, or redistribute articles for any lawful purpose in any medium, provided you give appropriate credit to the original author(s) and the journal, link to the license, and indicate if changes were made.
Authors submitting to this journal agree to make their work freely available under the CC BY 4.0 license, ensuring broad dissemination and reuse. The full license details can be accessed at https://creativecommons.org/licenses/by/4.0/.
This ensures that they receive the maximum dissemination because there are no barriers to access. This license allows readers to disseminate and reuse the paper, but always requires them to grant the authors and the first publication full credit.
While JEB upholds ethical publishing standards, the responsibility for ensuring originality and compliance with copyright regulations lies with the authors. The journal is not liable for any legal claims related to the content of published articles.
For further inquiries, please contact the editorial team.
