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Corporate governance and dividend payout ratio in non-financial firms listed in Indonesian Stock Exchange

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  • La Ode, Sumail

Abstract

Dividend payout policy has proved to be a complicated issue in the financial management literature that leads to the issuance of different arguments and theories explaining the facts about dividend ratio. The prime objective of the current study is to explore the impact of corporate governance on dividend payout ratio. In order to investigate the linkage between corporate governance and dividend payout ratio, data of four fiscal years (2013-2016) was extracted from annual reports of Indonesian publicly listed companies. The study examines the impact of ownership structure and corporate governance mechanisms on dividend payout ratio using panel data regression model. The findings of the study indicate that board independence, board size, institutional ownership, size and earnings before interest and tax are positive; whereas the CEO duality, managerial ownership, ownership concentration and leverage are in negative relation with dividend payout ratio.

Suggested Citation

  • La Ode, Sumail, 2018. "Corporate governance and dividend payout ratio in non-financial firms listed in Indonesian Stock Exchange," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(4), pages 851-861, August.
    • Handle: RePEc:pdc:jrnbeh:v:14:y:2018:i:4:p:851-861
    DOI: http://dx.doi.org/10.15208/beh.2018.58
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    Cited by:

    1. Anis El Ammari, 2021. "Do CEO Duality and Ownership Concentration Impact Dividend Policy in Emerging Markets? The Moderating Effect of Crises Period," IJFS, MDPI, vol. 9(4), pages 1-21, November.

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    More about this item

    Keywords

    Corporate governance; dividend payout ratio; Indonesia; non-financial firm;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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