Corporate Governance and Dividend Policy in Indonesian Manufacturing Companies

DOI

10.2991/978-94-6463-350-4_65How to use a DOI?

Keywords

Board size; ownership structure; board independence; leverage; firm size; profitability; growth; free cash flow; liquidity; capital expenditures

Abstract

This study aims to examine the effect of corporate governance on dividend policy. The sample used in this study was 41 manufacturing companies listed on the Indonesia Stock Exchange for 2015 - 2019. The sampling technique used was purposive sampling, and the analysis method used was multiple linear regression. The independent variables in this study are board size, ownership structure (domestic institutional ownership and foreign institutional ownership), board independence, leverage, firm size, profitability, growth, free cash flow, liquidity, and capital expenditures.

Meanwhile, the dependent variable in this study is the dividend policy (dividend payout and dividend yield). The results showed that direct board independence, firm size, profitability, and growth positively affected dividend payout. Board size, leverage, and profitability significantly positively affect dividend yield. As moderating variables to assess ownership structure (domestic institutional ownership), capital expenditure and board independence significantly affect dividend payout. Capital expenditures have a significant negative impact on dividend yields. Board size, domestic institutions, foreign institutions, leverage, free cash flow, liquidity, and board independence as moderating variables to increase ownership structure (foreign institutions) do not affect dividend payout. Domestic institutional ownership, foreign institutional ownership, direct board independence, company size, company growth, free cash flow, liquidity, and board independence as moderating variables to increase ownership structure (domestic institutional ownership and foreign institutional ownership) do not affect dividend yields.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sumbaga Bimas Abdurrozaq
AU  - Farah Margaretha Leon
AU  - Siti Rahimah Widyaty
AU  - Wahyuni Rusliyana Sari
AU  - M. D. Mahmudul Alam
AU  - Putra Pratama
PY  - 2024
DA  - 2024/01/10
TI  - Corporate Governance and Dividend Policy in Indonesian Manufacturing Companies
BT  - Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
PB  - Atlantis Press
SP  - 657
EP  - 665
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-350-4_65
DO  - 10.2991/978-94-6463-350-4_65
ID  - Abdurrozaq2024
ER  -