Corporate Governance and Dividend Policy in Indonesian Manufacturing Companies

This study aims to examine the effect of corporate governance on dividend policy. The sample used in this study was 41 manufacturing companies listed on the Indonesia Stock Exchange for 2015 - 2019. The sampling technique used was purposive sampling, and the analysis method used was multiple linear regression. The independent variables in this study are board size, ownership structure (domestic institutional ownership and foreign institutional ownership), board independence, leverage, firm size, profitability, growth, free cash flow, liquidity, and capital expenditures. Meanwhile, the dependent variable in this study is the dividend policy (dividend payout and dividend yield). The results showed that direct board independence, firm size, profitability, and growth positively affected dividend payout. Board size, leverage, and profitability significantly positively affect dividend yield. As moderating variables to assess ownership structure (domestic institutional ownership), capital expenditure and board independence significantly affect dividend payout. Capital expenditures have a significant negative impact on dividend yields. Board size, domestic institutions, foreign institutions, leverage, free cash flow, liquidity, and board independence as moderating variables to increase ownership structure (foreign institutions) do not affect dividend payout. Domestic institutional ownership, foreign institutional ownership, direct board independence, company size, company growth, free cash flow, liquidity, and board independence as moderating variables to increase ownership structure (domestic institutional ownership and foreign institutional ownership) do not affect dividend yields.