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The study investigates how overcash and corporate governance variables affect the propensity and the intensity of dividend payment which is measured by dividend per sales and dividend pay-out ratio. Agency theory argues that overcash leads to overinvestment and overcompensation that are vulnerable to firm-s cash flow. Additionally, this study examines how corporate governance attributes consisting of level of concentration, board size, proportion of independent commissioner and managerial stock ownership can effectively mitigate agency conflict through dividend payment. This study applies quantitative method by employing panel data of the non-financial IDX firms for the period between 1995 and 2014 or consecutive twenty years. For this purposes, we employ there models of analysis: (i) the probit estimation to investigate managers- decision on the propensity of firm paying dividends; (ii) pooling ordinary least square by incorporating fixed effect and random effect to investigate the intensity of firms paying dividends; and (iii) Heckman two-step procedures to consider sample selection bias regarding firms- decision on dividend policy. Probit estimation reveals that variables of overcash and level of ownership concentration have positive and strong association with the propensity of firm paying dividends, suggesting that firms with overcash and higher level of concentration pay higher dividend as a vehicle to mitigate agency conflict. In regards with the intensity of paying dividend, variables of overcash, level of ownership concentration, and board size positively and highly affect dividend policy. By controlling sample selection bias, the Heckman two-step procedures provide other important statistical results that all of main explanatory variables except board size have significant association with the propensity and intensity of firms paying dividends.