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The Role of Ownership’s Concentration Moderating Dividend Policy Effects on Firm Value

Author

Listed:
  • Rudi Zulfikar
  • Nana Nofianti
  • Kurniasih Dwi Astuti
  • Meutia Meutia
  • Aldi Ramadan

Abstract

Purpose: The main aim of this research is to examine the role of ownership’s concentration moderating of dividend policy effects on firm value. Design/methodology/approach: For the empirical part we have used a sample of 23 companies with five years of observation a total of 115 data observations. The retrieval of data observations in the sample was based on certain criteria in the period of 2014-2018. Findings: The result supported the hypothesis that dividend policy had a positive effect on firm value. Besides, the concentration of ownership weakened the relationship between the dividend policy and the firm value. Results proved that companies in Indonesia whose ownership had been owned by families would affect management policies, such as dividend policy. Practical Implications: Therefore, the concerns of business ethics in Indonesia had been weak. It was supporting the allegation that law enforcement in Indonesia was weak. Originality/value: The Novelty of testing the concentration of ownership as a moderating variable.

Suggested Citation

  • Rudi Zulfikar & Nana Nofianti & Kurniasih Dwi Astuti & Meutia Meutia & Aldi Ramadan, 2020. "The Role of Ownership’s Concentration Moderating Dividend Policy Effects on Firm Value," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 126-135.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:2:p:126-135
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    References listed on IDEAS

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    Cited by:

    1. Qin Qi & Weijie Li & Chong Liu & Yuncheng Huang & Changsheng Hu, 2022. "Continuous cash dividends, ownership structure and firm value: Evidence from Chinese A-share market," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-18, March.

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    More about this item

    Keywords

    Firm value; dividends policy; ownership concentration.;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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