Dividend Policy Research Articles

Impact of Inflation and Financial Ratios on Dividend Distribution in Healthcare Sector Companies Listed on the Indonesia Stock Exchange (2020-2022)

Objective: To examined the influence of inflation, current ratio, debt to equity ratio, and return on equity on dividend distribution in health sector companies during the 2020 to 2022 period, because this period includes the COVID-19 pandemic. Study Design: This kind of research is quantitative and depends on the Indonesia Stock Exchange for the acquisition of secondary data. Study Location and Duration: 2020–2022 listings of health sector firms on the Indonesia Stock Exchange. Methodology: Purposive sampling was used in this study to identify 10 companies that met the objectives of the investigation. The analysis technique used is panel data regression, the analysis tool EViews 12. Results: Research findings show that inflation, DER, and ROE do not have a significant negative impact on dividend distribution, while CR shows a significant positive impact. This shows that liquidity plays an important role in dividend distribution decisions during the Covid 19 pandemic. TImplication: This study underscores the importance of maintaining adequate levels of liquidity for healthy companies when determining dividend policy, especially during the Covid 19 pandemic. Investors and policymakers are advised to consider these factors when evaluating a company's financial health and dividend prospects.

PENGARUH LIKUIDITAS, PROFITABILITAS, LEVERAGE TERHADAP NILAI PERUSAHAAN YANG DIMODERASI OLEH KEBIJAKAN DIVIDEN

This research aims to determine the effect of liquidity, profitability and leverage on firm value moderated by dividend policy by using a sample of 23 family manufacturing companies listed on the IDX in 2018-2020. The data processing of this research uses Eviews 12. The results of this study indicate that liquidity has a negative and insignificant effect on firm value; profitability has a positive and significant impact on firm value; leverage has a positive and insignificant effect on firm value; dividend policy has a positive and insignificant effect; dividend policy does not have a significant and negative effect on the relationship between the influence of liquidity on firm value; dividend policy does not have a significant and positive effect on the relationship between profitability and firm value; dividend policy has no significant and negative effect on the relationship between leverage and firm value.

Information Asymmetry Effect on Stock Liquidity Effect on Dividend Payout in Market Microstructure in Indonesia

The impact of market microstructure in shaping corporate governance has been distinguished in several previous research. Market Microstructure becomes prominent factor in emerging markets. This study tested the effect of market microstructure, in the scheme of stock liquidity, on dividend payouts. This study has set focus mainly on the impact of stock liquidity on the corporate payout policy. Later, the researcher examined the interaction given to the stock liquidity factor with information transparency and agency problem properties since the researcher believed that transparency is linked to the and, subsequently, affecting the corporate agents. This research examined observations using quantitative research method, Tobit regression on 256 non-financial firms of the Indonesian capital market during 2010-2018. Stock liquidity significantly impacted dividend policy. The result showed robustness with other stock liquidity measures. This study found that information asymmetry and agency problems had a moderation effect on stock liquidity effect on dividend payout. However, the interaction of stock liquidity and disparity of control rights and cash flow rights did not give a moderation effect on the dividend payout policy. The result supports the notion that dividend payout is an outcome of firm good governance and an inverse of dividend signaling theory.

The effect of managerial ownership and capital structure on stock returns with dividend policy as an intervening variable

The objective of this study is to gather empirical data regarding the impact of management ownership and capital structure on stock returns, with dividend policy acting as an intervening factor. This study employs quantitative methodologies. The study focuses on the consumer products industrial sector listed on the Indonesia Stock Exchange for the period of 2020-2021. A subset of 25 organizations was chosen using the Purposive sampling approach, which adheres to specific criteria. This study demonstrates that the ownership of insiders has an impact on the structure of capital and, consequently, on the policy regarding the distribution of dividends. Stock returns are influenced by managerial ownership and dividend policy, but capital structure does not have an impact on stock returns. Furthermore, the outcome of the Sobel test demonstrates that dividend policy does not have the capability to moderate the impact of managerial ownership and capital structure on stock returns.

Corporate Governance and Dividend Policy in Indonesia

Corporate Governance and Dividend Policy in Indonesia

Peran Profitabilitas dalam Memediasi Kebijakan Dividen: Studi Kasus pada Jakarta Islamic Indeks 70

This study stems from the phenomenon of investment shifting from the real sector to financial Practice with expectations of obtaining returns in the form of dividend policies. The research examines the impact of Leverage, liquidity and profitability as intermediate variables in dividend policy, for issuers listed in the Jakarta Islamic Index (JII 70). Using several purposive sampling criteria, 25 issuers were selected as research samples. Leverage describes the company's ability to settle obligations with debt; companies with high leverage tend to retain earnings rather than distribute dividends. Liquidity reflects the company's ability to meet short-term obligations; liquid issuers tend to distribute dividends. Profitability, measured through Return on Equity (ROE), is expected to mediate the relationship between leverage and liquidity with dividend policy. According to the Trade-Off Theory, the balance between the use of debt and current assets positively impacts profitability, increasing the likelihood of dividend distribution. The research results show that leverage and liquidity have an adverse impact on dividend policy, with liquidity having a beneficial effect but not contributing to profitability, while leverage negatively affects profitability. Profitability does not significantly mediate the relationship between leverage and liquidity with dividend policy. These findings are important for investors and management in understanding the factors impacting dividend policy decisions in the Sharia capital market.

Firm Value between the Banking and Property Industry: Evidence of Pandemic Covid 19 in Indonesia

The study aims to find evidence of the impact of profitability and dividend policy on firm value. The population of this study are banking and property companies listed on the IDX (Indonesia Stock Exchange). The findings of this study indicate that in the banking industry, the average value of firm value and dividend policy during the pandemic increased, while profitability decreased. For the property industry, the average firm value and profitability during the pandemic increased, while the dividend policy decreased. There is a difference between the average profitability before and after the Covid-19 outbreak for the banking and property industries. Meanwhile, the average dividend policy and firm value are not statistically different.

Negative Externalities of Regulation: Identity‐relevant Information in Mandatory Short‐selling Disclosures

Since November 2012, short sellers have been required to disclose all their significant short positions against European firms. While this regulation was primarily implemented to have implications for financial markets, I explore its negative externalities on shorted firms. Using mandatory disclosures of short positions between 2013 and 2019, I find that short‐selling notifications and the number of short sellers with an open short position are positively associated with shorted firms’ dividend policies. Notably, the association is more pronounced for upward and initial notifications compared to downward and follow‐up notifications. These results are robust to several matching methods and a battery of robustness tests. Additional results reveal that shorted firms might increase their dividends because short‐selling disclosures reveal the identity of active and large short sellers, highlighting the importance of short sellers’ heterogeneity. I also show that shorted firms increase their dividends temporarily and do not react homogenously, as they engage in a cost–benefit analysis to decide whether to use their dividend policy. Overall, I document the real effects on shorted firms of an alternative form of short selling, bridging the gap between passive and activist short selling. I conclude that mandatory short‐selling disclosure regimes carry negative externalities for firms due to the provision of short sellers’ identity‐relevant information.

The Effect of Dividend Policy on Company Value: Empirical Studies in the Industrial Manufacturing Sector for the 2016-2020 Period

The purpose of this study is to examine the effect of dividend policy on the value of manufacturing companies in the industrial sector listed on the Indonesia Stock Exchange. The sampling technique is purposive sampling technique, and 8 samples were obtained, which were accessed through the official account idx.co.id in the form of annual financial statements. The variables in this study use two variables, namely the dependent variable and the independent variable. The dependent variable (Y) of this study is the value of the company. The independent variable (X) of this study is dividend policy. The research method used is quantitative. For the analysis method, namely using multiple linear regression analysis. As for data processing using the IBM SPSS Statistics 22 program. The results of this study show that dividend policy has a positive effect on the value of manufacturing companies in the industrial sector listed on the Indonesia Stock Exchange for the period 2016-2020.

PENGARUH CORPORATE SOCIAL RESPONSIBILITY, GOOD CORPORATE GOVERNANCE DAN DIVIDEND POLICY TERHADAP KINERJA PERBANKAN DI INDONESIA

This research aims to examine the influence of corporate social responsibility, good corporate governance (institutional ownership and board size), and dividend policy on the financial performance of banking in Indonesia Stock Exchange (IDX) during the period of 2018 to 2022. A sample of 44 was selected using purposive sampling. The analysis was conducted using E-Views, and the results indicate that corporate social responsibility, good corporate governance, and dividend policy simultaneously affect financial performance. CSR and GCG (institutional ownership and board size) do not significantly influence banking performance in Indonesia, while dividend policy has a significant negative effect on banking performance. This study provides insights for banks and investors to consider dividend policy in managing their businesses and making investment decisions.

Analisis Kebijakan Investasi, Kebijakan Hutang, Kebijakan Dividen dan Nilai Perusahaan Sektor Energi

Purpose: This research aims to partially analyze the influence of investment policy, debt policy and dividend policy on firm value in energy sector companies listed on the IDX for the 2018-2022 period. Methodology: This research uses quantitative methods. The population in this research was 75 companies. The sample was obtained using a purposive sampling technique of 14 companies. The data used in this research is secondary data from energy sector companies listed on the Indonesian Stock Exchange in 2018-2022, the amount of data is 70. The analytical tool used in this research is panel data regression with the help of E-views 12 software. Results: The results of this study show that investment policy and dividend policy have a positive significant effect on firm value, while debt policy does not have a significant effect on firm value. Limitations: The limitation of this research is that the value of the coefficient of determination (R²) is only 62.05%, which is still relatively low because it is below 80%. Besides that, there is one hypothesis that can not be proven, namely the debt policy variable. Contribution: This research can be used as consideration for investors before investing because the three company policies, namely investment policy, debt policy and dividend policy can provide an overview of the firm's condition.

Cash flow Practices and Dividend Policy of Listed Health Care Firms in Nigeria

Cash flow Practices and Dividend Policy of Listed Health Care Firms in Nigeria

The Impact of Competitive Relations on the Issuers’ Dividend Policy

Purpose: The aim of the research is to analyse the impact of indicators of market position and financial stability of companies as determinants of competitiveness on dividend policy. Methodology: The research employed the methods of correlation analysis, multivariate regression, and statistical analysis. Findings: As a result of the study, two indicators characterizing dividend policy and eleven indicators were identified as determinants of companies’ competitiveness. It was established which determinants of competitiveness have a close connection and significant impact on the dividend policy. It was found that for Lenovo, P/B ratio (–0.69) has the greatest impact, Dividend Yield, variables not included in the model (0.62), Annual revenue (1.18), Net assets by year (0.93) — on Annual dividend payments. For ASUS, Total debt by year (0.88) has the greatest impact on Dividend Yield, Total liabilities (0.36) and Total debt (0.63) - on Annual dividend payments. Originality: The results indicate that ASUS actively uses debt policies in the competition for investors, while Lenovo follows a more conservative approach. The results may be useful for investors when choosing companies to invest in. Research prospects may be aimed at investigating the relationship between dividend policy and global macroeconomic phenomena.

The Effect Of Gender Diversity And Free Cash Flow On Dividend Policy With Firm Size As A Moderating Variable

The purpose of this study was to determine the effect of gender diversity and free cash flow on dividend policy with firm size as a moderating variable. The population in this study are mining companies listed on the Indonesia Stock Exchange in 2020-2023. This study used purposive sampling technique, so 138 data were obtained from 87 mining companies listed on the Indonesia Stock Exchange. The results showed that gender diversity has no effect on dividend policy, free cash flow has a significant positive effect on dividend policy. Firm size cannot moderate the effect of gender diversity and free cash flow on dividend policy. The implications of the results of this study are expected to provide information for consideration by stakeholders such as the board of directors and as information for investors in making investment decisions.

Impact of Leverage, Market Share, and Dividend Policy on Firm Value in the Technology Sector

This study investigates the effects of financial leverage, market share, and dividend policy on firm value within the global technology sector. Using data from 120 publicly listed technology companies over the period from 2010 to 2022, a multiple regression analysis is employed to examine how these independent variables influence firm value, as measured by market capitalization. The findings show that financial leverage negatively impacts firm value, as higher debt levels increase financial risk and reduce investor confidence. Market share demonstrates a strong positive effect, with companies holding larger market shares benefiting from economies of scale and competitive advantages, leading to higher valuations. Moreover, dividend policy is found to play a significant role in influencing firm value. Firms with stable and attractive dividend payouts are generally viewed more favorably by investors, which boosts market capitalization. The results suggest that while expanding market share contributes positively to firm value, excessive debt can undermine this advantage. Additionally, maintaining a consistent and attractive dividend policy can further enhance firm value by signaling financial health and stability to investors. This study provides critical insights for technology sector managers and investors, emphasizing the importance of balancing financial strategies, market positioning, and dividend distribution to maximize firm value.

Pengaruh Profitabilitas, Leverage, dan Likuiditas Terhadap Nilai Perusahaan dengan Kebijakan Dividen Sebagai Variabel Moderasi Pada Perusahaan Sub Sektor Makanan dan Minuman Yang Terdaftar di BEI Periode 2018-2022

This research aims to test and analyze the influence of Profitability, Leverage and Liquidity on Company Value with Dividend Policy as a Moderating Variable in Food and Beverage Sub-Sector Companies Listed on the IDX for the 2018-2022 Period. This research is associative research with a quantitative approach. The population in this research is 22 companies in the Food and Beverage Sub Sector listed on the Indonesia Stock Exchange in 2018-2022. In determining the sample using the Purposive Sampling method, a sample of 12 companies was obtained for 5 years with an analysis of 60 observations. In this research, the panel data regression model is applied using the Random Effect Model (REM) approach, while testing the moderating variables is carried out using MRA (Moderated Regression Analysis) with the EViews 12 program. The test results show that Profitability, Leverage and Liquidity have no effect on company value. Meanwhile, Dividend Policy as a moderating variable is unable to moderate Profitability, Leverage and Liquidity on Company Value.

Pengaruh Profitabilitas Leverage dan Kebijakan Dividen Terhadap Nilai Perusahaan Sektor Pertanian yang Terdaftar di Bursa Efek Indonesia Periode 2018-2022

This research examines the effect of profitability, leverage and dividend policy to enterprise value of agricultural sector listed on Indonesian stock exchange. The research type is associative with quantitative approach. The sampling metode is purposive sampling which resulted 12 samples of company from 2018-2022 period. To answer the hypothesis in this research used multiple linear regression of panel data that analys with E-Views version 12. This research findings show that profitability (return on equity) have significant and positive effects on enterprise value. Whereas leverage (debt to equity ratio) and dividend policy (dividend payout ratio) doesn’t have effects on enterprise value. In investation need to be noticed carefuly for analys the performance from a company by seeing the value of profitability, leverage and dividend policy for increase enterprise value so able to give the advantage for the investor or stakeholders.

Pengaruh Keputusan Investasi, Keputusan Pendanaan dan Kebijakan Dividen Terhadap Nilai Perusahaan pada Perusahaan Sub Sektor Kesehatan yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2020-2022

This study aims to analyze the influence of Investment Decisions, Funding Decisions and Dividend Policies on Company Value in Health Sub-Sector Companies Listed on the Indonesia Stock Exchange for the 2020-2022 Period. This research is an associative quantitative research. Samples using purposive sampling techniques. The sample amounted to 11 companies from 31 health sub-sector companies listed on the Indonesia Stock Exchange for the 2020-2022 period. Multiple linear regression data analysis technique using SPSS 2022 for windows software. The data analysis used is normality test, heteroscedasticity test, autocorrelation test, multicolonicity test, multiple linear regression test, t test, f test and determination coefficient test. The results showed that Investment Decisions had an insignificant negative effect on company value, Funding Decisions had a positive insignificant effect on company value and Dividend Policy had a negative insignificant effect on company value.

THE INFLUENCE OF CORPORATE SUSTAINABILITY ON TAX DISTRIBUTION AND DIVIDEND DISTRIBUTION

This study investigates the impact of corporate sustainability on effective tax rates and dividend payout ratios among companies listed in the LQ45 index over the period from 2018 to 2022. Corporate sustainability is increasingly recognized as a crucial aspect of business strategy, influencing financial structures and shareholder value distribution. Utilizing a panel data analysis taken from Bloomberg, we explore how sustainability growth rate affect their tax strategies and dividend policies. Our findings reveal a nuanced interaction between corporate sustainability and fiscal obligations. Specifically, the study indicates that higher levels of corporate sustainability correlate with a lower effective tax rate; however, this relationship is statistically insignificant. This suggests that while sustainable practices may influence tax-related decisions, other factors such as changes in tax legislation, profitability, and tax planning strategies might play more pivotal roles in determining the effective tax rate. Conversely, the impact of corporate sustainability on dividend payout ratios is both negative and statistically significant. Companies with robust sustainability practices tend to reinvest a greater portion of their earnings back into the business to support sustainable growth and long-term value creation, leading to lower dividend distributions. This finding highlights the prioritization of capital retention over immediate shareholder returns among sustainably focused firms in the LQ45 index. This research contributes to the understanding of how sustainability initiatives intersect with financial policies within Indonesian listed companies. The insights provided could help investors and policymakers better understand the financial implications of sustainability growth rate, particularly in emerging markets where such practices are gaining momentum. The results also suggest areas for further research, particularly in exploring the indirect pathways through which sustainability might influence corporate financial policies.

The Impact of CEO Overconfidence on Dividend Policy: Evidence from Egypt

The Impact of CEO Overconfidence on Dividend Policy: Evidence from Egypt