Abstract
<p>The inconsistent distribution of dividends is a unique phenomenon and it needs to be examined. Therefore, the purpose of this study is to examine ten predictors affecting dividend policy of the inconsistent distribution of dividends. This study used the purposive sampling method to analyze the data that were obtained from a total sample of 133 observation objects collected in the 19 real estates, property, and building construction companies listed on the IDX Between 2013 - 2019. Furthermore, the method used is hypotheses testing and statistical analysis tool used is the hierarchical multiple panel data regression with the Least Squares Dummy Variables. The results obtained from panel A are firm risk, financial leverage, and investment opportunity that affect the dividend policy. Meanwhile, the panel B results are company risk, financial leverage, investment opportunity, and previous dividend, although the previous dividend had no effect due to the different direction of influence. This study proves the determinants and relevance of the parametric statistical analysis in the inconsistent distribution of dividends. Moreover, it is useful for managerial practitioners to pay attention to predictors for increasing company performances and to ensure investors obtain optimal return of their dividend.</p>
Highlights
The success or failure of a company depends on how the management performs its functions optimally
The purpose of this study is to examine ten predictors affecting the inconsistent distribution of dividends including the profitability, firm risk, financial leverage, liquidity, investment opportunity, agency cost, firm size, growth, previous dividend, and firm age
This study tested the formulated hypothesis of the 10 predictors that affect dividend policy and they include profitability, firm risk, financial leverage, liquidity, investment opportunity, agency cost, firm size, growth, previous dividend, and firm age, with variable proxies listed in table 1
Summary
The success or failure of a company depends on how the management performs its functions optimally. This aims to increase it's funds, investment, using of financial managerial functions wisely, and adapting to change. The choice of stocks is an instrument for investors during an investment because of the benefits of high attractiveness. Their funds help in increasing welfare with the expectation of profits that include capital gains and dividend yields (Badu, 2019; Damodaran, 2015)
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