Assessing determinants of dividend policy of the government-owned companies in Indonesia
International Journal of Law and Management
ISSN: 1754-243X
Article publication date: 31 October 2019
Abstract
Purpose
The purpose of this study is to examine the influences of financial leverage, profitability, the growth of assets and institutional ownerships on the dividend payout of the Indonesian Government-owned companies.
Design/methodology/approach
Annual data from the period 2007 to 2013 of the 15 listed government-owned companies on the main board in the Indonesian Stock Exchange were analyzed using the multiple regressions.
Findings
Except for the growth of assets that has an insignificant effect on the dividend policy, the financial leverage and institutional ownerships were documented to have negative and significant influences on the dividend policy, while the profitability has a positive and significant effect on the dividend policy. These findings imply that the profitability, financial leverage and institutional ownership should be considered as the important factors by the Indonesian Government-owned companies in determining their dividend policy.
Originality/value
Originality in this paper is to establish a model of leverage, profitability, asset growth and institutional ownership of dividend payments of Indonesian Government-owned companies with a panel regression approach.
Keywords
Acknowledgements
Expression of Concern: The publisher of the International Journal of Law and Management is issuing an Expression of Concern for the following article Basri, H. (2019), “Assessing determinants of dividend policy of the government-owned companies in Indonesia”, published in the International Journal of Law and Management, Vol. 61 Nos 5/6, pp. 530-541, to inform readers that credible concerns have been raised regarding the authorship of this paper. An investigation is ongoing and is currently unresolved. Further information will be provided by the International Journal of Law and Management as it becomes available.
Corrigendum: It has come to the attention of the publisher that the article Basri, H. (2019), “Assessing determinants of dividend policy of the government-owned companies in Indonesia”, published in International Journal of Law and Management, Vol. 61 Nos 5/6, listed an additional author. The online version has since been updated and the correct citation is now listed. The authors sincerely apologise for this.
Citation
Basri, H. (2019), "Assessing determinants of dividend policy of the government-owned companies in Indonesia", International Journal of Law and Management, Vol. 61 No. 5/6, pp. 530-541. https://doi.org/10.1108/IJLMA-09-2017-0215
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited