Affect Dividend Policy Research Articles

Corporate dividend policy, managerial overconfidence, myopia, and investor irrationality: a complex concoction

Corporate dividend policy is a puzzle, especially when considering the effects of economic and behavioural factors. We develop a theoretical analysis of corporate dividend policy in order to analyse the effects of the complex mix of managerial moral hazard, overconfidence, and myopia on managerial incentives to increase or decrease dividends. Furthermore, we consider the effect of investor irrationality that drives corporate dividend catering behaviour. We investigate how this complex mix of economic and behavioural factors is likely to affect dividend policy. Our analysis provides a deep theoretical underpinning to understanding these effects and provides a basis for future empirical research.

The audit committee and dividend policy: an empirical study of the post-SOX era

PurposePost-Sarbanes Oxley Act (SOX), the audit committee has been empowered greatly to play a central role in the corporate governance of firms. Embedded in agency theory, this study aims to examine the effect of the audit committee on the likelihood by firms to pay dividends.Design/methodology/approachThe study population is US firms in the Institutional Shareholder Services (ISS) database from 2007 to 2018. The authors apply the multivariate logit fixed-effect regression for the analyses after conducting the appropriate statistical tests.FindingsFrom the results of the research model, the authors find that there is a positive relationship between the size and gender diversity of the audit committee and the propensity to pay dividends suggesting that a larger audit committee with substantial women representation improve the information environment in firms leading to higher dividend distribution. The extent of busyness of the audit committee impacts negatively on the propensity to pay dividends. The results are driven by high-performing firms and not driven by specific levels of firm size.Research limitations/implicationsThe findings of the study give impetus to the audit committee as an important component of the corporate governance mechanism that advances the interest of stakeholders. Thus, efforts that seeks to promote the audit committee’s resourcefulness must be embraced by all stakeholders.Originality/valueTo the best of the authors’ knowledge, this study is the first to focus on audit committee and dividend payout policy of US firms post-SOX. The study demonstrates how the audit committee characteristics including its size, gender diversity and busyness affect dividend policy by mitigating information asymmetry problems.

Relationship between Ownership, Capital Structure, and Investment Opportunities with Dividend Policy: A study in Manufacturing Companies

Dividend policy is the disagreeing desire of the company between managers and shareholders. The company retains cash to increase the company's growth; on the other hand, shareholders expect a reasonably high dividend. This study analyses the effect of managerial ownership, institutional ownership, capital structure, investment prospects, and sales growth on dividend policy. The type of data used in this research is secondary data from the 2017-2021 financial reports. The technique in this study uses panel data regression. Samples were taken using a purposive sampling technique of 71 companies listed on the Indonesia Stock Exchange (IDX). The results show that managerial ownership, institutional ownership, and sales growth do not affect dividend policy. Capital structure has a significant negative effect on dividend policy. Investment opportunities have a significant positive effect on dividend policy.

Capital Structure, Profitability, and Block Holder Ownership on Dividend Policy using Free Cash Flow as Moderation Variable

The aim of this study is to investigate the influence of sales growth, company size, profitability, and non-debt tax shield on the capital structure of food and beverage companies in the consumer sector listed on the Indonesia Stock Exchange between 2017 and 2020. The research utilizes secondary data and employs purposive sampling to select a sample of 38 companies. Data analysis involves quantitative descriptive analysis and the use of SmartPLS software for various calculations. The findings indicate that block holder ownership does not significantly affect dividend policy, capital structure does not significantly impact dividend policy, profitability has a positive influence on dividend policy, and free cash flow does not significantly affect dividend policy. It is hoped that future researchers can add knowledge and insight in the field of financial and financing ratios and examine more deeply related to financial performance in the development of primary consumer goods sector companies on the IDX.

Determinants of Dividend Policy: Growth Opportunities, Business Risk and Leverage with Size as Moderation

To find out whether investment opportunity set, business risk, and leverage affect dividend policy. To determine whether firm size can strengthen/weaken the effect of the investment opportunity set, business risk, and leverage on dividend policy. In this study, dividend policy is measured by dividend payout ratio (DPR), investment opportunity sets are measured using proxies based on the market-to-book value of equity (MBVE), business risk is calculated using the basic earning power ratio (BEPR) proxy, and leverage (debt to equity ratio) as a ratio that describes how much the company conducts debt policy. The firm size variable used in this study is measured using the natural logarithm of total assets. This research is quantitative application research, this research uses interaction test analysis or better known as moderated regression analysis (MRA). The sample was selected using a purposive random sampling method in companies going public on the Indonesia Stock Exchange in the consumer sector for the period 2017-2021. The results of this study indicate that investment opportunity sets do not affect dividend policy, low business risk has a positive effect on dividend policy, and leverage has a positive effect on dividend policy. Size can moderate of the investment opportunity set and low business risk on dividend policy but size cannot moderate the effect of leverage on dividend policy.

The effect of profitability, company size, leverage, liquidity, and free cash flow on dividend policy

This study aims to examine and analyze the effect of profitability, company size, leverage, liquidity, and free cash flow on dividend policy in the health sector of companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period. This study uses signaling theory as the basis of the research. The type of data used is secondary data in the form of the company's annual financial report. The sampling technique used in this study was purposive sampling method based on certain criteria. The data analysis technique that was used in this study is multiple linear regression. The research results show that: (1) Profitability has no effect on dividend policy. (2) Firm size has a positive effect on dividend policy. (3) Leverage has no effect on dividend policy. (4) Liquidity has no effect on dividend policy. (5) Free cash flow has no effect on dividend policy. The implication in this study is that company size will affect dividend policy. This research proves that the larger the size of the company, the greater the company's dividend payout policy. Meanwhile, profitability, leverage, liquidity and free cash flow have not been able to influence the company's dividend policy.

Determinants of Dividend Policy on Development Board Index: Manufacturing Sector in Indonesia Stock Exchange (IDX)

This study aims to investigate the determinant factors that affect dividend policy in Development Board Index (DBX), with the manufacturing sector listed in Indonesia stock exchange (IDX) and the period 2018-2021. There are independent variables such as ROA, debt, sales growth and firm age and dividend policy as dependent variables. The study population are manufacturing companies which are listed on the development board index. This study examines 8 companies with a total of 32 data samples. The panel data regression with random effect model was used to analyze data. The results of this study are ROA, and sales growth has an impact on dividend policy. ROA has a positive impact, and sales growth has a negative impact on dividend policy. Meanwhile, debt and age have no significant impact on the dividend policy. Keywords: Development Board Index, Dividend Policy, Profitability, Debt, Sales Growth

The Role of Collateralizable Asset, Profitability and Operating Cash Flow on Dividend Policy: A Study on ASEAN Non-Financial Companies

Purpose of the study: This study examines the role of collateralizable assets, profitability, and operating cash flow on dividend policy. Methodology: In this study, researchers used data obtained from the OSIRIS database, which processes data from each exchange in the country studied and compiled a panel data set of ASEAN non-financial companies. Main Findings: The results of this study found that profitability and operating cash flow significantly affect dividend policy, namely, securing assets that can be guaranteed. Individual collateral assets do not affect dividend policy. Meanwhile, using the proxy return on assets, profitability has a positive effect on dividend policy, and operating cash flow also significantly influences dividend policy, but the impact is negative. Research limitations/implications: With this research can maintain its profitability value so that it can take future dividend policies that benefit investors or companies themselves. Novelty/Originality of this study: This study focuses on collateralizable assets, profitability, and cash flow operations. This has been done because we are very interested in the phenomenon. After all, as we know, this collateral asset is an asset that can be pledged, and so we want to see if a dividend policy can cover this collateral. Because it must be high collateral, it must be able to signal to the company that the company has a high asset value, making it management's responsibility not to be afraid to pay dividends. policies.

Pengaruh Kebijakan Investasi dan Kebijakan Dividen terhadap Nilai Perusahaan dengan Good Corporate Governance sebagai Pemoderasi (Studi Pada Perusahaan High Dividend 20 yang Terdaftar di BEI 2017-2021)

In investing, investors wants profit so they make a decision by analyzing the value of the firm. The purpose of this research is to ascertain how investment policy and dividend policy on firm value moderated by GCG. This research used quantitative method with moderating regression analysis (MRA) research method. Investment policy is proxied by TAG, dividend policy ratio through DPR, GCG through ACGS, and firm value through PBV. According to the study’s findings, investment policy have an impact on a firm value although the dividend policy had no bearing. The presence of GCG is able to strengthen the effect of investment policy on firm value but can not affect dividend policy on firm value.

Capital Structure and Dividend Policy

The Capital Structure describes the combination of various components on the right side of the balance sheet. In general, it is a combination of debt and equity where the composition of the company's debt and capital will determine the dividend policy of the company's value. The value of the company reflects the present value of the expected income in the future. The financial management function can maximize the value of the company. Optimal capital structure will also affect dividend policy and high dividend payout will be responded by investors as a sign that the company is in good condition. A high dividend policy will also be responded to by an increase in share prices which will increase the value company.

Factors Affecting Dividend Policy In Companies In The Era of Covid-19 Pandemic

This study aims to examine the effect of free cash flow, profitability, collateralizable asset and debt policy on dividend policy. The method of data analysis in this study uses the method of multiple regression analysis on Eviews program assistance and data collection method using purposive sampling. The data used are secondary data obtained from 81 data financial statements of sector property, real estate and building construction companies listed on the Indonesia Stock Exchange in 2019-2021. The results of this study indicate that the free cash flow and collateralizable assets variable has a positive influence on dividend policy, while profitability and debt policy variable has no postitive effect on dividend policy

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

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.

Pengaruh Leverage, Liquidity, Firm Size Dan Institutional Ownership Terhadap Dividend Policy

The purpose of this study is to reveal how leverage, liquidity, firm size and institutional ownership affect dividend policy in the property and real estate sector companies listed on the Indonesia Stock Exchange for the 2015-2021 period. The data applied in this study is secondary data obtained from annual reports or financial reports published on the Indonesia Stock Exchange website or company website. The sampling technique applied in this research is purposive sampling and obtained 6 companies from 79 research objects. The regression model applied is panel data regression. The results of the study reveal that there is a simultaneous influence of independent variables, namely leverage, liquidity, firm size and institutional ownership on dividend policy in property and real estate sector companies in 2015-2021. Partially, liquidity has a significant positive effect on dividend policy, while leverage, firm size and institutional ownership have no effect on dividend policy.

Analysis of Factors Affecting Dividend Policy with Firm Size as a Moderating Variable in the Consumer Goods Company Listed on Indonesia Stock Exchange

This research delves into the effects of profitability, liquidity, leverage, free cash flow, and managerial ownership as factors affecting dividend policy in the consumer goods companies listed on the Indonesia Stock Exchange in the period of 2016-2020. Firm size, serving as a moderating variable, is also addressed. The population consists of the consumer goods companies listed on Indonesia Stock Exchange from 2016 to 2020, resulting in 50 observation data. This research uses secondary data and performs panel data regression analysis with multiple linear regression tests and interaction moderation tests using EViews software to test the hypothesis. The findings indicate that profitability has a positive and significant effect on dividend policy. Managerial ownership has a negative and significant effect on dividend policy. Liquidity, Leverage, and Free Cash Flow, on the other hand, do not affect dividend policy. It is also found that firm size cannot moderate profitability, liquidity, leverage, free cash flow, and managerial ownership on Dividend Policy. Keywords: profitability, liquidity, leverage, free cash flow, managerial ownership, dividend policy, firm size.

Can Board Diversity Promote Dividend Policy? Seeking The Role of Profitability

This study investigates the effect of the board of directors (BOD) diversity on dividend policy and how the implications of profitability are treated as moderation. Dividend policy and BOD characteristics have been studied extensively; however, the profitability role being moderating variable and BOD diversity are challenging. To the best of the authors' knowledge, this study is one of the first to examine profitability as moderation. BOD diversity includes gender, age, education level, accounting expertise, and nationality. The research period spanned 2017-2020, where the number of samples was 370 companies listed on the Indonesia Stock Exchange, resulting in 1,480 data. The regression model used is panel data. Overall, BOD gender, education level, and nationality are homogeneous, where female directors, directors with master's education, and foreign directors have a small proportion. As a result, they have no significant effect in promoting dividends. In addition, profitability cannot influence the relationship between board gender and board nationality on dividends. Nevertheless, profitability moderates the relationship between board nationality and dividend policy to a significant negative. Further, board age and accounting expertise positively and significantly affect dividend policy, and the results are identical when moderated by profitability. The proportion of board expertise expressed is heterogeneous, and the board age of 52 years is categorized as old, while they mitigate agency conflict. Thus, companies are required to maintain these proportions. However, companies must remedy the recruitment system to accommodate more female directors, directors with higher education at the master's level, and foreign directors. The government must also refer to regulations in developed and developing countries that establish a minimum quota for the presence of female directors.

Profitability, liquidity, leverage, and corporate dividend policy

This study examines the factors influencing dividend policy: profitability, liquidity, and leverage. The dependent variable of dividend policy is measured using the Dividend Payout Ratio (DPR). The return measures the independent variable of profitability on Equity (ROE) proxy. The independent variables of liquidity are measured using the Current Ratio (CR) proxy, and leverage is measured by the Debt-to-Equity Ratio (DER) proxy. The sampling method was purposive, and data were analyzed using multiple linear regression. The sample was manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. The number of observational data used in the test totaled 221 observations. This research shows that profitability positively affects the dividend payout ratio, and other variables, namely liquidity, and leverage, do not affect dividend policy. The research results are expected to add to the research literature on the factors influencing dividend policy

PENGARUH LEVERAGE, PROFITABILITAS, LIKUIDITAS, KEPEMILIKAN MANAJERIAL, DAN KEPEMILIKAN INTITUSIONAL TERHADAP KEBIJAKAN DIVIDEN

The purpose of this study is to determine the effect of leverage, profitability, liquidity, managerial ownership, and institutional ownership on dividend policies in manufacturing companies listed on the Indonesia Stock Exchange (IDX). The research period used is 5 years, namely the period 2015-2019. The population of this study includes all manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2021 period. The sampling technique uses purposive sampling technique. Based on the established criteria obtained 7 companies. The type of data used is secondary data obtained from the Indonesia Stock Exchange website. The analysis method used is panel data regression analysis. The results showed that institutional ownership has a significant positive effect on dividend policy, managerial ownership has a significant negative effect on dividend policy. Leverage, profitability, and liquidity have no significant influence on dividend policy. Leverage, profitability, liquidity, managerial ownership, and institutional ownership together affect dividend policy

Do women board members affect dividend policy and cash holdings? Evidence from ASEAN emerging economies

Purpose This study aims to examine the influence of board gender diversity on dividend policy and cash holdings in several emerging economies. This study also investigates the nonlinear impact of women on dividend policy and cash holdings and the differences between countries with one- and two-tier board systems. Design/methodology/approach The sample includes 103 firms listed in the Association of South East Asian Nations (ASEAN) countries of Indonesia, Malaysia, the Philippines and Thailand. The data represent all industries except the financial industry. The sample period is the 10 financial years from 2010 to 2019. This study analyzed unbalanced panel data with fixed effect specifications for baseline model analysis. Findings This study finds robust evidence indicating that women’s presence negatively influences dividends and positively influences cash holdings. The findings in the additional analysis are significant and show a nonlinear relationship, supporting the substitution hypothesis. Practical implications The findings of this paper certainly provided a valuable contribution as a useful empirical guide for policy decision-makers in developing countries, regulators and corporate decision-makers related to board gender diversity. Developed countries have implemented a minimum quota of women boards in the composition of the board of directors. However, there are still few developing countries that implement these policies. Women can reflect or show their values in corporate governance, such as being careful in making decisions and being conservative about risk. These guides policymakers in implementing a minimum quota of women in the composition of the board of directors. Originality/value This study contributes to the debate on the impact of gender diversity on dividends and cash holdings, especially in ASEAN emerging economies because there is a notable empirical gap relative to developed countries. Moreover, this study contributes to the necessary nuanced understanding of the substitution hypothesis in emerging economies. The results also support the explanation of critical mass theory to account for the nonlinear relationship between the number of women board members and dividends and cash holdings.

Factors Affecting Dividend Policy in Indonesian State-Owned Enterprises (SOEs)

This study examines factors affecting dividend policy with firm size, leverage, and profitability as control variables. Among the management policies aimed at improving the welfare of stakeholders, the result is in the form of dividends. Investors who receive dividends from companies that distribute dividends expect the company's share price to increase. The study population was all publicly listed SOEs listed on the IDX in 2022, with 20 companies in the observation year for 11 years from 2011 to 2021. The determination of the sample in this study used the non-probability sampling method with purposive sampling technique so that the total sample into 220 observed companies. This study uses multiple linear regression. The results showed that dividend premium, free cash flow, and audit delay had a significant positive effect on dividend policy, and firm size, leverage, and profitability were able to be control variables for this direct relationship.

Indikator Keuangan dalam Laporan Keuangan dan Kebijakan Dividen

This study aims to analyze the relationship between the financial indicators contained in the financial statements and dividend policy. Companies that are listed on the Indonesia Stock Exchange and meet the criteria set out in the study are used as research samples. This study uses 631 observational data from 2017 - 2021 obtained from the company's official website and the Indonesia Stock Exchange. Panel data regression is used to examine the effect of each variable on dividend policy. The best regression model in this study is the Fixed Effect Model. This study shows that free cash flow; firm risk; and return on equity have a significant positive effect on dividend policy. In addition; market to book value ratio and net asset growth have a significant negative effect. Other variables used in this study do not affect dividend policy.
 Keywords: Dividend Policy; Profitability; Liquidity; Financial Ratios.