Institutional Ownership and Dividend Policy: Evidence Indonesia Companies
Imas Purnamasari, Nugraha
Universitas Pendidikan Indonesia
Abstract
Abstract .This study aims to determine the effect of Institutional ownership on dividend policy in company listed in Indonesia Stock Exchange from 2011 to 2017. The research method used is descriptive verification method. Data collection techniques used are secondary data from the official website of Indonesia Stock Exchange in the form of financial reports and annual reports. The population in this study is companies listed on the Indonesia Stock Exchange in 2011-2017. Based on sampling using a purposive sampling method obtained 42 companies so that the observation data amounted to 294 data. Hypothesis testing in this study was carried out using multiple linear regression panel data. The results showed that Institusional ownership is Positively related to dividend policy. Profitability moderates the effect of Institutional Ownership on dividend policy. The implication of this finding theoretically accepted agency theory which stated that dividends can be used to minimize agency cost. One way to reduce agency costs is to increase dividend payments.
Keywords: : Institusional ownership, Profitability, Dividend Policy and Agency Theory.
Topic: Finance and Accounting