Corporate Social Responsibility and Dividend Policy in Indonesia : Advent of Firm Size as a Moderator

Abstract

This research aims to analyze the determinants of dividend policy. The independent variable in this study is corporate social responsibility which will be moderated by variable firm size. While the dependent variable is dividend policy, and the control variables are leverage, growth opportunity, and firm’s age. The sample of this study uses 35 companies listed on the LQ45 Index for the period of 2019-2021. The sampling technique uses purposive sampling and the analysis method uses panel data regression. The results explained that corporate social responsibility, the moderating variable firm size, and growth opportunity do not affect dividend policy. Firm’s age has a significant negative effect on dividend policy. Leverage has a significant positive effect on dividend policy. The implication of the research that has been done is to provide direction for financial managers to consider the benefit of increasing leverage to a strategic investment for a productive assets and business expansion which lead to generate more profit for company which means a positive impact on dividend paid to shareholder. As for investors, investors should pay attention with the maturity of the business and significant amount of CSR cost since these will affects negatively to the company's dividend policy.