Diterminants of Dividend Policy: The role of Corporate Governance as Moderating Variable

Abstract

This research aims to investigate the influence of important factors including; profitability, liquidity, leverage and size that effect dividend policy with corporate governance as moderating variables. The research method uses a quantitative causality approach through the formulation of hypotheses, to analysis the influence of independent on the dependent variables using Moderating Regression Analysis (MRA) with SPSS software. The research sample was 14 manufacturing companies in the basic chemical industry sector which were observed during the 5 year period 2018 2022, obtaining a sample N of 70 observations. The research results show that before being moderated by institutional ownership, the variables that influence dividend policy are ROA, and Leverage has a negative influence on dividend policy, and Size has a positive influence. When the moderating variable Institutional Ownership is included, it is able to show the role of Institutional Ownership in moderating the influence of ROA, Current Ratio, and Leverage which negatively influences dividend policy, and Size influences positively. These findings provide the implication that institutional ownership is able to support the upholding of corporate governance values for companies, supports stakeholder theory and agency theory.