Ownership Structure on Dividend Policy in The Indonesian Stock Exchange

Vincent; Liliana Ingrit  Wijaya; Werner Ria Murhadi

doi:10.24123/jeb.v4i2.5657

Vincent University of Surabaya, Indonesia
Liliana Ingrit Wijaya University of Surabaya, Indonesia
Werner Ria Murhadi University of Surabaya, Indonesia http://orcid.org/0000-0002-7297-861X

DOI: https://doi.org/10.24123/jeb.v4i2.5657

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PDF Downloads: 250 times

Keywords: Family Ownership, Institutional Ownership, Concentration Ownership, Dividend Policy

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.

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