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Searching for Determinants of Pay or Not to Pay Cash Dividend in Indonesia

Indonesian Capital Market Review

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Field Value
 
Title Searching for Determinants of Pay or Not to Pay Cash Dividend in Indonesia
 
Creator Triasesiarta Nur; Institut Bisnis Nusantara
Kresnohadi Ariyoto Karnen; Departemen Manajemen Fakultas Ekonomi Universitas Indonesia
 
Subject —
 
Description A dividend decision of a firm is an outcome of various considerations. These considerations differ across time and industry. Based on asymetric information – agency theory thougtht, this study re-examined various variables that have a bearing on the dividend decision of a firm. In addition to examining the impact of corporate fundamentals on  dividend policy, the study also analyzed the effect of expropriation trigger variables (family ownership, cash funds, the level of diversification and Related Party Transaction/RPT) on a dividend policy. The results of panel logistic regression indicated that Cash Funds, RPT, Profitability, Size, Growth, Debt and Macroecomics variables are the determinants of the dividend policy for Indonesian listed public companies, observed during 2002 to 2010.   Keywords: dividend policy-pay and not pay cash dividend, expropriation, asymmetry information, agency theory,  family ownership, cash funds, level of diversification, related party transaction, panel data analysis.
 
Publisher Management Research Center, Department of Management, Faculty of Economics and Business, U
 
Contributor —
 
Date 2014-01-01
 
Type Peer-reviewed Article
 
Format application/mbox
 
Identifier http://journal.ui.ac.id/index.php/icmr/article/view/2984
 
Source Indonesian Capital Market Review; Vol 6, No 1 (2014): January 2014
 
Language en