Abstract
The purpose of this study to examine and analyze differences in the average policy of dividend payments with government ownership in companies listed on the Indonesia Stock Exchange in period 2008-2017. Previous research still shows differences in research results or inconsistent results between one study and another. The results showed that the average dividend payment policy carried out by the government was higher than companies that did not have government ownership. This is considered as government ownership, so the amount of dividends distributed will increase. Based on the results of this study it can be concluded that government ownership provides an average higher dividend payment policy than non-government ownership. Suggestions for company management, in making dividend payment policies, the company should always consider the interests of the company’s owners. Investors should pay attention to factors outside the economy in investing. For further researchers, it can be used as an additional reference and research can be done one by one sector.
Highlights
One topic that is often discussed and interesting issues in agency theory is dividend policy
Et al (2009) states that companies controlled by the government distribute high dividends, so that government ownership has a positive effect on dividend policy
The results of this study indicate that the independent variable, namely government ownership, has an average difference in the dividend policy of all companies distributing dividends listed on the Indonesia Stock Exchange for the period 2008 to 2017
Summary
One topic that is often discussed and interesting issues in agency theory is dividend policy. According to Prasetyo (2013) dividend payments can provide control over agency conflicts, so company performance will be better In making decisions such as dividend policy can not be separated from conflicts between shareholders and managers, conflicts that are often referred to as agency problems (agency conflict) that will lead to agency costs (Erfiana & Ardiansari, 2016). Chen, et al (2009) states that companies controlled by the government distribute high dividends, so that government ownership has a positive effect on dividend policy. Le and Le (2017) research results that the positive and significant coefficient of government ownership revealed that companies privatized with the state as the largest shareholder would pay a higher dividend than the base company (the company with the largest shareholder as a local investor). H1: There is a difference between the average dividend payment policy and government ownership owned by the company
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