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 107
- Downloads 0
The Impact of Adoption of XBRL on Information Risk in Representative Countries of Scandinavian Region
This study aimed to examine the impact of the adoption of eXtensible Business Reporting Language (XBRL) in reduced the information risk of financial reporting disclosures. Information transparency, information asymmetry,...
The Differences Cost of Equity Capital between Before and After Adoption of IFRS
The objective of this study was to analyze and compare between the cost of equity capital between before and after the adoption of IFRS on Statement of Financial Accounting Standard Financial Instrument (PSAK) for bankin...
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...
MEDIATION OF CSR AND PROFITABILITY ON THE INFLUENCES OF GCG MECHANISMS TO THE FIRM VALUE
The purpose of this research was to determine the causal relationship among GCG mechanism, financial performance, CSR and firm’s value. The model of the research was constructed by using financial performance and CSR as...
Financial Technologies: A Note on Mobile Payment
The financial market is currently disrupted by the rise of new technologies "FinTech” a short form for financial technology, which profoundly reshapes the financial intermediary structure and makes financial services mor...