Effect of Ownership Structure, Investment Opportunity and Debt Policy on Dividend Policy
Keywords:
Dividend Policy, Managerial Ownership, Institutional Ownership, Investment Opportunity Set, Debt Policy
Abstract
The purpose of this study was to analyze the effect of ownership structure, investment opportunities and debt policy on dividend policy in the LQ 45 companies of the Indonesian Stock Exchange in 2017-2020. The population in this study was composed of companies belonging to the LQ 45 group of the Indonesian exchange with a total sample of 30 companies that were consistent in the LQ 45 group of the Indonesian exchange over the period 2017-2020. The analysis technique used is panel data regression using Eviews 9.0. The results of this study indicate that the management of real estate, institutional real estate and investment opportunities have a significant effect on dividend policy, while debt policy has no significant effect on dividend policy..
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References
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Weston, J. W. & Brigham, E. F. 2001. Fundamentals of Financial Management. Erlangga: Jakarta.
Arie Afdal and Abdul Rohman. (2012), Effect of Investment Decisions, Funding Decisions and Dividend Policy on Firm Value. Journal of Accounting Vol 1, No 2 April 2012:09.
Atmaja, Lukas S. 2008. Theory and Practice of Financial Management. Yogyakarta: Andi Publisher.
Brealey. Ricrd A. Myers, Stewart C, & Marcus, Alan J. (2008), Fundamentals of Corporate Financial Management. Jakarta: Erlangga.
Brigham, Eugene F. and Joel F. Houston. (2001), Fundamentals of Financial Management. Jakarta: Salemba Four.
Brigham&Houston 2010, Essentials of Financial Management, Salemba Empat, Jakarta.
Diyah, Pujiati, Widanar, Erman (2009). “The Effect of Ownership Structure on Firm Value: Financial Decisions as Intervening Variables”. Journal of Business and Venture Economics, Vol. 12. No. 1, pp. 71-86.
Fitrijanti, T&Hartono, M, J 2002, 'Set of Investment Opportunities: Proxy Construction and Analysis of Its Relationship with Funding and Dividend Policy', Indonesian Journal of Accounting Research, Volume. 5, No. 1, January 2002: 35-63.
Gaver, JJ & Gaver, K, M 1993, 'Additional evidence on the association between the investment opportunity set and corporate financing, dividend, and compensation policies', Journal of Accounting and Economics, Volume.16 (1993) 125-160, North-Holland.
Hidayat, Riskin. (2010), Investment Decisions and Financial Constraints: Empirical Study on the Indonesia Stock Exchange, Bulletin of Monetary, Economics and Banking, April 2010.
Ismiyati, Fitri and Mahmud Hanafi. 2003. “Managerial Ownership, Institutional Ownership, Debt Policy Risk and Dividend Policy: Simultaneous Equation Analysis. VI National Accounting Symposium. pp.820-948.
Kumar, Suwendra 2007, Analysis of the Effect of Ownership Structure, Investment Opportunity Set (IOS), and Financial Ratios on Dividend Payout Ratio (DPR), Thesis, Master of Management, Diponegoro University, Semarang.
Mulyono, Budi, 2009, "The Influence of Debt To Equity Ratio, Insider Ownership, Size and Investment Opportunity Set on Dividend Policy", Thesis, Master of Management, Diponegoro University, Semarang.
Miller, M. and K. Rock, 1985, “Dividend Policy Policy Under Asymmetric Information”, Journal of Finance, Vol.11 No.4 Hal. 1031-1052
Muhammad Irfan Khan. (2009), Price Earning Ratio and Market to Book Ratio. IUB Journal of Social Science and Humanities. 7, (2), 103-112.
Mulyani, L., Pitaloka, E. (2007). Effect of Return on Equity, Earning per Share (EPS), and Debt to Equity Ratio on Price Earning Ratio (PER) at PT Indofood Sukses. Widyakala Volume 4 No.1 February 2008: 32-47.
Munawar, A.H. (2019). Firm Age Moderates ROE and DER Against Dividend Policy Based on High Dividend Index 20. Journal of Accounting Volume 14 Number 1, .22-31. http://jurnal.unsil.ac.id/index.php/jak
Sugiyono 2004, Econometry, Jakarta, Ghalia Indonesia.
Suharli, Michelle 2007, Effect of Profitability and Investment Opportunity Set on Cash Dividend Policy with Liquidity as Reinforcing Variable, Journal of Accounting and Finance, Vol.9. Number 1.
Sunarto. 2004. Analysis of the Effect of Managerial Ownership, Investment Opportunity Set, Return on Assets and Debt to Equity Ratio to Dividend Payout Ratio (thesis). Semarang: Diponegoro University Postgraduate Program.
Smith, C, W & Watts, R, L 1986, The Investment Opportunity Set and Corporate Policy, Choices, Journal of Accounting and Economics.
Smith, C.W., Jr. and Watts, R. (1992), ‘‘The investment opportunity set and corporate financing, dividends, and compensation’’, Journal of Financial Economics, Vol. 32 No. 3, pp. 263-92.
Tarjo and Jogiyanto Hartono, 2003, Analysis of Free Cash Flow and Managerial Ownership of Debt Policy in Public Companies in Indonesia, Seminar Papers, National Accounting Symposium VI, p. 278-293.
Taswan. (2003), Analysis of the Effect of Insider Ownership, Debt and Dividend Policy on Firm Value and the Factors Affecting It. Journal of Economics and Business, September 2003.
Wahidahwati, 2002, "The Influence of Managerial Ownership and Institutional Ownership on Corporate Debt Policy: A Theory Agency Perspective." Indonesian Journal of Accounting Research, Vol. 5, No. 1, pp. 1–16.
Weston, J. W. & Brigham, E. F. 2001. Fundamentals of Financial Management. Erlangga: Jakarta.
