Determination of Factors Influencing Dividend Policy: A Case Study of a Manufacturing Company in Indonesia
Keywords:
Dividend Policy, Board of Directors, Independent Board of Commissioners, Managerial Ownership, Institutional Ownership, Profitability, Leverage
Abstract
This study aims to analyze the influence of the board of directors, independent board of commissioners, managerial ownership, institutional ownership, profitability, and leverage on dividend policy. This study uses a quantitative research approach and the data used in this study are secondary data obtained from the financial statements and annual reports of manufacturing companies listed on the Indonesia Stock Exchange for the 2019-2022 period. The sample of this study is a manufacturing company listed on the Indonesia Stock Exchange in 2019-2022 which was selected by the purposive sampling method so that 66 sample data were obtained. Data analysis techniques are performed using descriptive statistics, classical assumption tests, multiple linear regression analysis, and hypothesis testing. The results showed that independent board of commissioners and managerial ownership have a positive effect on dividend policy, while profitability and leverage have a negative effect on dividend policy. However, the board of directors and institutional ownership have no effect on dividend policy.
References
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Ardelia, J., & Lukman, H. (2023). Factors Affecting Dividend Policy on LQ45 Index Companies on The Indonesia Stock Exchange. International Journal of Application on Economics and Business (IJAEB), 1(2), 24–35. https://doi.org/10.24912/ijaeb.v1.i2.24-35
Atikah, L. N. (2018). Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Profitabilitas, Leverage, dan Cash Position terhadap Kebijakan Dividen. UMY Repository, 1–24.
Atmoko, Y., Defung, F., & Tricahyadinata, I. (2017). Pengaruh Return on Assets, Debt to Equity Ratio, dan Firm Size terhadap Dividend Payout Ratio. Kinerja : Jurnal Ekonomi dan Manajemen, 14(2), 103–109. https://doi.org/10.30872/jkin.v14i2.2486
Baker, H. K., & Jabbouri, I. (2016). How Moroccan Managers View Dividend Policy. Managerial Finance, 42(3), 270–288. https://doi.org/10.1108/MF-07-2015-0211
Bakri, M. A., Abd Jalil, M. I., & Hassan, Z. (2021). Dividend Policy In Malaysia: A Comparison of Determinants Pre and Post Malaysian Code on Corporate Governance. International Journal of Banking and Finance, 16(2), 1–22. https://doi.org/10.32890/ijbf2021.16.2.1
Bataineh, H. (2021). The Impact of Ownership Structure on Dividend Policy of Listed Firms in Jordan. Cogent Business and Management, 8(1), 1–18. https://doi.org/10.1080/23311975.2020.1863175
Boanyah, E. A., Ayentimi, D. T., & Frank, O. Y. (2013). Determinants of Dividend Payout Policy of Some Selected Manufacturing Firms Listed on The Ghana Stock Exchange. Research Journal of Finance and Accounting, 4(5), 49–60. https://ssrn.com/abstract=2549465
Chandra, B., & Junita, N. (2021). Tata Kelola Perusahaan dan Manajemen Laba terhadap Kebijakan Dividen di Indonesia. Jurnal Ekonomi Modernisasi, 17(1), 15–26. https://doi.org/10.21067/jem.v17i1.5188
Damayanti, R., Marwati, F. S., & Widayanti, R. (2017). Analisa Kebijakan Dividen Berdasarkan Teori Lintner. Agregat: Jurnal Ekonomi dan Bisnis, 1(2), 183–194. https://journal.uhamka.ac.id/index.php/agregat/article/view/825
Dhuhri, R., & Diantimala, Y. (2018). The Influence of Institutional Ownership, Individual Ownership, and Managerial Ownership Toward Dividend Payout Ratio at Non-Financial Companies Registered in Indonesia Stock Exchange in 2012-2016. International Journal of Social Science and Economic Research, 3(3), 786–801. https://ijsser.org/more2018.php?id=55
Dissanayake, K. T., & Dissabandara, H. (2021). The Impact of Board of Directors’ Characteristics on Dividend Policy: Evidence From a Developing Country. Corporate Governance and Sustainability Review, 5(2), 44–56. https://doi.org/10.22495/cgsrv5i2p4
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. https://doi.org/10.1016/j.econmod.2018.07.007
Handini, S. (2023). Dividends Policy during The Financial Crisis: Are Ownership Structure and Corporate Governance Important? Akrual: Jurnal Akuntansi, 14(2), 248–261. https://doi.org/10.26740/jaj.v14n2.p248-261
Hartono, W., Laturette, K., & Gunawan, K. (2023). The Impact of Corporate Governance on Dividend Payout Ratio Policy During the Covid-19 Era: The Study Case in The Basic Material Industry in Indonesia. International Journal of Accounting & Finance in Asia Pasific, 6(2), 42–54. https://doi.org/10.32535/ijafap.v6i2.2314
Heidary, M., & Jalilian, O. (2016). Review of Corporate Governance and Payment Policies for Approved Companies on The Tehran Stock Exchange. Pacific Science Review B: Humanities and Social Sciences, 2(2), 47–52. https://doi.org/10.1016/j.psrb.2016.09.011
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 & Business, 3(1), 14–23. https://doi.org/10.24123/jeb.v3i1.4702
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. https://doi.org/10.1016/0304-405X(76)90026-X
Johanes, S. R., Hendiarto, R. S., & Nugraha, N. M. (2021). The Effect of Institutional Ownership, Managerial Ownership, And Company Size To Dividend Policy. International Journal of Trends in Accounting Research, 2(1), 87–96.
Kartana, W., Tjahjadi, B., & Narsa, M. (2022). Managerial Ownership and Dividend Policy in Indonesia. International Journal of Economics, Commerce and Management, 10(4), 28–39.
Komite Nasional Kebijakan Governance (KNKG). (2006). Pedoman umum good corporate governance Indonesia.
Kumar, S., Sasidharan, A., Olasiuk, H., & Vihari, N. S. (2023). Does Board Independence Matters for Dividend Policy in Emerging Economies. Procedia Computer Science, 221, 853–860. https://doi.org/10.1016/j.procs.2023.08.061
Mahdzan, N. S., Zainudin, R., & Shahri, N. K. (2016). Interindustry Dividend Policy Determinants in The Context of an Emerging Market. Economic Research-Ekonomska Istrazivanja , 29(1), 250–262. https://doi.org/10.1080/1331677X.2016.1169704
Mardani, R. M., Moeljadi., Sumiati., & Indrawati, N. K. (2018). Ownership Structure, Corporate Governance and Dividend Policy: Evidence from Indonesia. KnE Social Sciences, 3(10), 1249–1255. https://doi.org/10.18502/kss.v3i10.3466
Mangasih, G. V., Nugrogo, M., & Pristiana, U. (2021). The Effect of Insider Ownership, Institutional Ownership, Dispersion of Ownership, Collateralizable Assets, and Board Independence Towards Dividend Policies with Financial Performance as an Intervening Variable in Finance Sector During 2015-2019. Untag Surabaya Repository.
Mardani, R. M. (2022). Dividend Policy, Ownership Structure and Corporate Governance: An Empirical Analysis Of Indonesian Firms. JEMA: Jurnal Ilmiah Bidang Akuntansi Dan Manajemen, 19(1), 60–76. https://doi.org/10.31106/jema.v19i1.11116
Nguyen, H. V., Dang, H. N., & Dau, H. H. (2021). Influence of Corporate Governance on Dividend Policy in Vietnam. Journal of Asian Finance, Economics and Business, 8(2), 893–902. https://doi.org/10.13106/jafeb.2021.vol8.no2.0893
Permana, H. A., & Hidayati, L. N. (2016). Analisis Pengaruh Leverage, Likuiditas, Profitabilitas, Pertumbuhan Perusahaan dan Ukuran Perusahaan terhadap Kebijakan Dividen pada Perusahaan Manufaktur yang Terdaftar di BEI. Journal Manajemen Bisnis Indonesia (JMBI), 5(6), 648–659. https://journal.student.uny.ac.id/ojs/index.php/jmbi/article/view/5064
Prihatini, P., & Susanti, D. (2018). Pengaruh Profitabilitas, Investment Opportunity Set, dan Kepemilikan Manajerial terhadap Kebijakan Dividen (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2013-2016). Jurnal Ecogen, 1(2), 298–307. https://doi.org/10.24036/jmpe.v1i2.4750
Putri, R. A., & Rokhim, R. (2016). The Effect of Ownership Structure and Cash Flow to The Non-Financial Firms’ Dividend Payout Ratio Listed in IDX. MIX: Jurnal Ilmiah Manajemen, 6(2), 181–194. https://publikasi.mercubuana.ac.id/index.php/Jurnal_Mix/article/view/874
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. https://doi.org/10.1016/j.cya.2015.12.006
Serly, S., & Susanti, M. (2021). Pengaruh Atribut Tata Kelola dan Karakteristik Perusahaan terhadap Kebijakan Dividen pada Perusahaan Di BEI. Jurnal Ekonomi Modernisasi, 17(3), 196–215. https://doi.org/10.21067/jem.v17i3.5872
Sumartha, E. (2016). Pengaruh Struktur Kepemilikan terhadap Kebijakan Dividen pada Perusahaan Manufaktur. Jurnal Economia, 12(2), 167–182. https://doi.org/10.21831/economia.v12i2.11114
Tahir, S. H., Aslam, M. A., & Akhtar, M. A. (2014). The Impact of Board Composition and Ownership Structure on Dividend Policy in Pakistan. Research Journal of Economics and Business & Business Studies, 3(6), 18–24.
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
Yoewono, H. (2023). The Effect of Independent Commissioners and Profitability on Dividend Policy with Company Growth as a Moderating Variable in Manufacturing Companies Listed on the Indonesia Stock Exchange 2018-2021 Period. International Journal of The Newest Finance and Accounting (INFA), 1(1), 28–42. https://doi.org/1
Anggoro, H. D., & Yulianto, A. (2019). Agency Theory: Ownership Structure and Capital Structure as Determinants of Dividend Policy. Management Analysis Journal, 8(4), 379–387. https://doi.org/10.15294/maj.v9i4.34313
Ardelia, J., & Lukman, H. (2023). Factors Affecting Dividend Policy on LQ45 Index Companies on The Indonesia Stock Exchange. International Journal of Application on Economics and Business (IJAEB), 1(2), 24–35. https://doi.org/10.24912/ijaeb.v1.i2.24-35
Atikah, L. N. (2018). Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Profitabilitas, Leverage, dan Cash Position terhadap Kebijakan Dividen. UMY Repository, 1–24.
Atmoko, Y., Defung, F., & Tricahyadinata, I. (2017). Pengaruh Return on Assets, Debt to Equity Ratio, dan Firm Size terhadap Dividend Payout Ratio. Kinerja : Jurnal Ekonomi dan Manajemen, 14(2), 103–109. https://doi.org/10.30872/jkin.v14i2.2486
Baker, H. K., & Jabbouri, I. (2016). How Moroccan Managers View Dividend Policy. Managerial Finance, 42(3), 270–288. https://doi.org/10.1108/MF-07-2015-0211
Bakri, M. A., Abd Jalil, M. I., & Hassan, Z. (2021). Dividend Policy In Malaysia: A Comparison of Determinants Pre and Post Malaysian Code on Corporate Governance. International Journal of Banking and Finance, 16(2), 1–22. https://doi.org/10.32890/ijbf2021.16.2.1
Bataineh, H. (2021). The Impact of Ownership Structure on Dividend Policy of Listed Firms in Jordan. Cogent Business and Management, 8(1), 1–18. https://doi.org/10.1080/23311975.2020.1863175
Boanyah, E. A., Ayentimi, D. T., & Frank, O. Y. (2013). Determinants of Dividend Payout Policy of Some Selected Manufacturing Firms Listed on The Ghana Stock Exchange. Research Journal of Finance and Accounting, 4(5), 49–60. https://ssrn.com/abstract=2549465
Chandra, B., & Junita, N. (2021). Tata Kelola Perusahaan dan Manajemen Laba terhadap Kebijakan Dividen di Indonesia. Jurnal Ekonomi Modernisasi, 17(1), 15–26. https://doi.org/10.21067/jem.v17i1.5188
Damayanti, R., Marwati, F. S., & Widayanti, R. (2017). Analisa Kebijakan Dividen Berdasarkan Teori Lintner. Agregat: Jurnal Ekonomi dan Bisnis, 1(2), 183–194. https://journal.uhamka.ac.id/index.php/agregat/article/view/825
Dhuhri, R., & Diantimala, Y. (2018). The Influence of Institutional Ownership, Individual Ownership, and Managerial Ownership Toward Dividend Payout Ratio at Non-Financial Companies Registered in Indonesia Stock Exchange in 2012-2016. International Journal of Social Science and Economic Research, 3(3), 786–801. https://ijsser.org/more2018.php?id=55
Dissanayake, K. T., & Dissabandara, H. (2021). The Impact of Board of Directors’ Characteristics on Dividend Policy: Evidence From a Developing Country. Corporate Governance and Sustainability Review, 5(2), 44–56. https://doi.org/10.22495/cgsrv5i2p4
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. https://doi.org/10.1016/j.econmod.2018.07.007
Handini, S. (2023). Dividends Policy during The Financial Crisis: Are Ownership Structure and Corporate Governance Important? Akrual: Jurnal Akuntansi, 14(2), 248–261. https://doi.org/10.26740/jaj.v14n2.p248-261
Hartono, W., Laturette, K., & Gunawan, K. (2023). The Impact of Corporate Governance on Dividend Payout Ratio Policy During the Covid-19 Era: The Study Case in The Basic Material Industry in Indonesia. International Journal of Accounting & Finance in Asia Pasific, 6(2), 42–54. https://doi.org/10.32535/ijafap.v6i2.2314
Heidary, M., & Jalilian, O. (2016). Review of Corporate Governance and Payment Policies for Approved Companies on The Tehran Stock Exchange. Pacific Science Review B: Humanities and Social Sciences, 2(2), 47–52. https://doi.org/10.1016/j.psrb.2016.09.011
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 & Business, 3(1), 14–23. https://doi.org/10.24123/jeb.v3i1.4702
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. https://doi.org/10.1016/0304-405X(76)90026-X
Johanes, S. R., Hendiarto, R. S., & Nugraha, N. M. (2021). The Effect of Institutional Ownership, Managerial Ownership, And Company Size To Dividend Policy. International Journal of Trends in Accounting Research, 2(1), 87–96.
Kartana, W., Tjahjadi, B., & Narsa, M. (2022). Managerial Ownership and Dividend Policy in Indonesia. International Journal of Economics, Commerce and Management, 10(4), 28–39.
Komite Nasional Kebijakan Governance (KNKG). (2006). Pedoman umum good corporate governance Indonesia.
Kumar, S., Sasidharan, A., Olasiuk, H., & Vihari, N. S. (2023). Does Board Independence Matters for Dividend Policy in Emerging Economies. Procedia Computer Science, 221, 853–860. https://doi.org/10.1016/j.procs.2023.08.061
Mahdzan, N. S., Zainudin, R., & Shahri, N. K. (2016). Interindustry Dividend Policy Determinants in The Context of an Emerging Market. Economic Research-Ekonomska Istrazivanja , 29(1), 250–262. https://doi.org/10.1080/1331677X.2016.1169704
Mardani, R. M., Moeljadi., Sumiati., & Indrawati, N. K. (2018). Ownership Structure, Corporate Governance and Dividend Policy: Evidence from Indonesia. KnE Social Sciences, 3(10), 1249–1255. https://doi.org/10.18502/kss.v3i10.3466
Mangasih, G. V., Nugrogo, M., & Pristiana, U. (2021). The Effect of Insider Ownership, Institutional Ownership, Dispersion of Ownership, Collateralizable Assets, and Board Independence Towards Dividend Policies with Financial Performance as an Intervening Variable in Finance Sector During 2015-2019. Untag Surabaya Repository.
Mardani, R. M. (2022). Dividend Policy, Ownership Structure and Corporate Governance: An Empirical Analysis Of Indonesian Firms. JEMA: Jurnal Ilmiah Bidang Akuntansi Dan Manajemen, 19(1), 60–76. https://doi.org/10.31106/jema.v19i1.11116
Nguyen, H. V., Dang, H. N., & Dau, H. H. (2021). Influence of Corporate Governance on Dividend Policy in Vietnam. Journal of Asian Finance, Economics and Business, 8(2), 893–902. https://doi.org/10.13106/jafeb.2021.vol8.no2.0893
Permana, H. A., & Hidayati, L. N. (2016). Analisis Pengaruh Leverage, Likuiditas, Profitabilitas, Pertumbuhan Perusahaan dan Ukuran Perusahaan terhadap Kebijakan Dividen pada Perusahaan Manufaktur yang Terdaftar di BEI. Journal Manajemen Bisnis Indonesia (JMBI), 5(6), 648–659. https://journal.student.uny.ac.id/ojs/index.php/jmbi/article/view/5064
Prihatini, P., & Susanti, D. (2018). Pengaruh Profitabilitas, Investment Opportunity Set, dan Kepemilikan Manajerial terhadap Kebijakan Dividen (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2013-2016). Jurnal Ecogen, 1(2), 298–307. https://doi.org/10.24036/jmpe.v1i2.4750
Putri, R. A., & Rokhim, R. (2016). The Effect of Ownership Structure and Cash Flow to The Non-Financial Firms’ Dividend Payout Ratio Listed in IDX. MIX: Jurnal Ilmiah Manajemen, 6(2), 181–194. https://publikasi.mercubuana.ac.id/index.php/Jurnal_Mix/article/view/874
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. https://doi.org/10.1016/j.cya.2015.12.006
Serly, S., & Susanti, M. (2021). Pengaruh Atribut Tata Kelola dan Karakteristik Perusahaan terhadap Kebijakan Dividen pada Perusahaan Di BEI. Jurnal Ekonomi Modernisasi, 17(3), 196–215. https://doi.org/10.21067/jem.v17i3.5872
Sumartha, E. (2016). Pengaruh Struktur Kepemilikan terhadap Kebijakan Dividen pada Perusahaan Manufaktur. Jurnal Economia, 12(2), 167–182. https://doi.org/10.21831/economia.v12i2.11114
Tahir, S. H., Aslam, M. A., & Akhtar, M. A. (2014). The Impact of Board Composition and Ownership Structure on Dividend Policy in Pakistan. Research Journal of Economics and Business & Business Studies, 3(6), 18–24.
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
Yoewono, H. (2023). The Effect of Independent Commissioners and Profitability on Dividend Policy with Company Growth as a Moderating Variable in Manufacturing Companies Listed on the Indonesia Stock Exchange 2018-2021 Period. International Journal of The Newest Finance and Accounting (INFA), 1(1), 28–42. https://doi.org/1
Published
2024-04-26
How to Cite
Vebry Vetarany, Norma Fuji Andini, & Putri Puspita Ayu. (2024). Determination of Factors Influencing Dividend Policy: A Case Study of a Manufacturing Company in Indonesia. Asian Journal of Management, Entrepreneurship and Social Science, 4(02), 557-575. Retrieved from https://ajmesc.com/index.php/ajmesc/article/view/769
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