Assessing determinants of dividend policy of the government-owned companies in Indonesia

Abstract

Purpose The purpose of this study is to examine the influences of financial leverage, profitability, the growth of assets and institutional ownerships on the dividend payout of the Indonesian Government-owned companies. Design/methodology/approach Annual data from the period 2007 to 2013 of the 15 listed government-owned companies on the main board in the Indonesian Stock Exchange were analyzed using the multiple regressions. Findings Except for the growth of assets that has an insignificant effect on the dividend policy, the financial leverage and institutional ownerships were documented to have negative and significant influences on the dividend policy, while the profitability has a positive and significant effect on the dividend policy. These findings imply that the profitability, financial leverage and institutional ownership should be considered as the important factors by the Indonesian Government-owned companies in determining their dividend policy. Originality/value Originality in this paper is to establish a model of leverage, profitability, asset growth and institutional ownership of dividend payments of Indonesian Government-owned companies with a panel regression approach.

The Effect of Profitability and Debt Policy on Share Investment Decisions in Manufacturing Companies on the IDX: Dividend Policies as an Intervening Variable

“…This study are not supportive with research conducted by [12] which states that profitability has a positive and significant effect on dividend policy and the results of research conducted by [13] and research conducted by [14] which states that Dividend policy has a significant positive effect on investment decisions.…”

“…The results of this study support the research conducted by [12] which states that profitability has a positive and significant effect on dividend policy. The support of research results has strengthened the relationship between profitability as measured using Return On Equity (ROE) has a positive influence on dividend policy as measured using Dividend Payout Ratio (DPR).…”

Assessing The Influence of Asset Turnover on Dividend Policy in Property Sector: The Case of Indonesia

“…The results of this study are in line with research conducted by Barros et al, (2020) which shows that profitability has a positive and significant effect on dividend policy. Likewise, research conducted by Basri [24] shows the same result, namely that profitability has a positive and significant effect on dividend policy.…”

Peran gender diversity dewan perusahaan dalam menentukan kebijakan dividen di Indonesia

“…Namun sebagaimana asumsi Miller dan Modigliani (1961) tentang ketidakrelevanan dividen yang menegaskan bahwa kebijakan dividen tidak berdampak pada nilai perusahaan, asumsi tersebut masih mendapat dukungan secara empiris seperti hasil studi Budagaga (2020). Terlepas dari pertentangan tersebut studi faktor-faktor penentu kebijakan dividen tetap menjadi penting termasuk dilakukan pada negara-negara berkembang (Yusof dan Ismail, 2016;Baker et al, 2019;Basri, 2019;Dewasiri et al, 2019;Sharma dan Baks, 2019). Kebijakan dividend perusahaan juga dihubungkan dengan tata kelola perusahaan seperti karakteristik dewan direksi dan dewan komisaris, indeks Transparansi dan pengungkapan, dan struktur dalam corporate governance (Setiawan dan Phua, 2013;Elmagrhi et al, 2017;Hasan et al, 2021).…”