The effect of company size, institutional ownership, profitability and leverage on dividends payout ratio

Abstract

The implication of this research is that company managers are expected to make dividend payout ratio decisions by looking at the factors that influence it, this is hoped that the company can avoid agency problems that can cause agency costs in the company, for corporate investors it is expected to be used as reference material for investing in the company by looking at the factors that affect the dividend payout ratio before investing, this study is expected to provide information about the factors that can affect the dividend payout ratio in the financial sector companies and is expected to be used as a reference for further research in the field of dividend payout ratios, further researchers can add other variables to find out other variables that affect the dividend payout ratio. This study is a study that uses secondary data and this study aims to determine the effect of company size, institutional ownership, leverage, and profitability on dividend payout ratio. The population in this study were financial sector companies on the Indonesian stock exchange in the period 2016-2018. The sample in this study were 16 companies in a 3year period. The sampling technique used was purposive sampling and the data analysis used was multiple linear regression analysis. The results of this study indicate that institutional ownership and profitability have a significant positive effect on the dividend payout ratio. Meanwhile, the variable company size and leverage does not have a significant effect on the dividend payout ratio.

Impact of corporate governance and CEO remuneration on bank capitalization strategies and payout decision in income shocks period

“…Armenia et al (2021) found that there is a causality relationship between delta and vega. By applying the simulation approach, the portfolio of the CEOs consisting of delta and vega asserts the increasing trend in the case of a riskier firm.…”

“…Waris et al ( 2021 ) also found the same results related to governance and payout using control variables such as size, growth, and profitably. According to Widodo et al ( 2021 ) within the presence of the restriction imposed by the company on outsourcing financing, the payout ratios of such types of companies are lower. The firm owner participation in the board of directors enhances the dividend payout.…”

“…Lee et al (2021) suggest that optimum payout policy is obsessed with the prerequisite to distributing the firm's free cash flow. They suggest a life-cycle theory that is the combination of the Jensen (1993) agency theory with development in the firm's investment opportunity set of the type debated.…”

Free Cash Flow in Moderated Capital Structure, Profitability, Institutional Ownership on Dividend Policy

“…Management becomes aware of a repeated cycle between dividends and the firm's value (John & Williams, 1985). Directors of a firm will possibly announce dividends but in fact, dividends are often used as an indicator to develop a firm's future funding (Widodo et al, 2021).…”

“…23969/jrak.v15i2.6585 In determining the number of dividends, shareholders are engaged with the number of shares they own. Shareholders wanted a seamless predictable distribution because the consistency of dividends could boost selfconfidence in business (Widodo et al, 2021). Easy money came with high risk, which was why shareholders needed to learn about a company vigorously to check and make a strategy.…”