EFFECT OF OWNERSHIP STRUCTURE TO DIVIDEND POLICY IN COMPANIES IN INDONESIA

The purpose of this study is to analyze the effect of ownership structure on dividend payout policy in companies listed in Indonesia Stock Exchange. In this study, there are 4 kinds of ownership structures that will be discussed, namely private ownership structure, government ownership structure, foreign ownerships structure and family ownership structure. Dividend payout policy uses DividndPayout Ratio (DPR) indicator Population of this study is all the companies listed in Indonesia Stock Exchange (IDX) 009-2011. Total samples in this study are 85 companies listed in Indonesia Stock Exchange determined by purposive sampling. Based on the study results, from the four ownership structures, only the private ownership structure influence Parliament. The implication for investors in doing this research, the investor can choose the private ownership structure of companies. for financial managers, this study provides information specifically on private companies that one way the companies reduce the agency problem could use dividend payout policy

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The Relationship between Ownership Structure and Dividend Policy: An Application in Vietnam Stock Exchange

Academic Journal of Interdisciplinary Studies ◽

10.2478/ajis-2019-0025 ◽

2019 ◽

Vol 8 (2) ◽

pp. 131-146

Author(s):

Thi Xuan Anh Tran ◽

Quoc Tuan Le

Keyword(s):

Ownership Structure ◽

Institutional Investors ◽

Stock Exchange ◽

Payout Policy ◽

Ownership Concentration ◽

H Index ◽

Dividend Payout ◽

Listed Firms ◽

Ownership Composition ◽

The Relationship

Abstract This research examines the possible association between ownership structure and Vietnam listed companies’ dividend payout policy over the period of 2009 – 2015. We have investigated 642 listed firms in Hochiminh stock exchange and Hanoi stock exchange, using pannel data analysis. Ownership structure is described with two main sub-variables: ownership concentration and ownership composition. Specifically, the Herfindahl index (or H-index) was applied to measure the level of ownership concentration /dispersion for all major shareholders in the company, including the five biggest investors, corporate institutional investors, the ownership concentration level, and foreign investors. It has been observed that the H-index of all major shareholders has an average of less than 0.5 but the value of the H-index of institutional investors at 0.594 indicates that institutional investors are more likely to be concentrated in the hands of large institutional investors. The result showed linear relationship between institutional ownership and the dividend rate, but not statistically significant for the relationship between managerial ownership and dividend payout ratio.

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Corporate governance and payout policy: evidence from India

Corporate Governance ◽

10.1108/cg-07-2018-0258 ◽

2019 ◽

Vol 19 (5) ◽

pp. 1117-1132 ◽

Cited By ~ 1

Author(s):

Monika Rajput ◽

Shital Jhunjhunwala

Keyword(s):

Corporate Governance ◽

Ownership Structure ◽

Dividend Policy ◽

Stock Exchange ◽

Positive Influence ◽

Family Ownership ◽

Board Independence ◽

Dividend Payout ◽

Content Type ◽

Significant Positive Influence

Purpose The purpose of this paper is to study the impact of ownership structure and corporate governance on dividend policy in emerging markets, like India. The study also analyses the moderation effects of board independence between ownership and dividend payout. Design/methodology/approach The data set of 1,546 Indian firms over the period of 2006-2017 has been used in this study. Tobit and logistic regression methods has been used. The data used in this study are collected from the Centre for Monitoring Indian Economy (CMIE) Prowess database. The sample firms are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Findings First, the study finds a significant positive influence of corporate governance on the decision to pay dividend and is an important determinant of the payout decision. Second, the study finds a significant negative relationship of family ownership with dividend payout decisions which indicates that family firms pay lower dividend. Finally, the result from the interaction effect of board independence with family ownership has significant positive influence on dividend policy. Originality/value This is one of the first attempt to show that there is an interaction between independent board and ownership structure. It shows that more independent and non-executive directors in the board of family controlled firms are likely to pay more dividends.

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Political Connection, Ownership Structures and Tax Aggressiveness: The Case of Indonesia

AFEBI Accounting Review ◽

10.47312/aar.v5i01.315 ◽

2020 ◽

Vol 5 (01) ◽

pp. 31

Author(s):

Agita Zafi Rahmasari ◽

Agung Nur Probohudono ◽

Doddy Setiawan

Keyword(s):

Ownership Structure ◽

Boards Of Directors ◽

Stock Exchange ◽

Institutional Ownership ◽

Foreign Ownership ◽

Annual Reports ◽

Political Connection ◽

Government Ownership ◽

Tax Aggressiveness ◽

Ownership Structures

The main purpose of this research is to examine the influences of political connection and ownership structures towards the tax aggressiveness in Indonesian companies. This research is a quantitative research and the samples consist of the companies listed in the Indonesia Stock Exchange in 2015-2016. Furthermore, the data used in this research is secondary data obtained from the companies’ financial reports and annual reports. The tax aggressiveness is measured with Book Tax Differences (BTD) proxy. The result of this research shows that political connection, government ownership, and foreign ownership give negative significant effects towards tax aggressiveness, while institutional ownership give no significant effect towards tax aggressiveness. The limitation of this research is the using of 2-year samples only that consist of companies in various sectors. In addition, the companies that are classified in a particular sector, are given different tax treatment by Directorate General of Taxes. This research can be beneficial for making taxation regulation in the future. This research is also expected to be the supporting literature for the next research for the scholars in the taxation and accounting field related to the company’ tax aggressiveness. This research extends the previous research by adding some type of ownership structure in analyzing factors that affect tax aggressiveness in Indonesia. The ownership structure consists of government ownership, foreign ownership, and institutional ownership. Furthermore, political connections in this study were analyzed from connections through boards of directors and commissioners.

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PENGARUH STRUKTUR KEPEMILIKAN TERHADAP KEBIJAKAN DIVIDEN PERUSAHAAN

SIMAK ◽

10.35129/simak.v16i02.39 ◽

2018 ◽

Vol 16 (02) ◽

pp. 119-141

Author(s):

Felicia Wuisan ◽

Fransiskus Randa ◽

Lukman Lukman

Keyword(s):

Ownership Structure ◽

Dividend Policy ◽

Stock Exchange ◽

Sampling Technique ◽

Foreign Ownership ◽

Family Ownership ◽

Managerial Ownership ◽

Government Ownership ◽

Financial Company ◽

Research Period

This research aims to examine the effect of ownership structure on dividend policy. In this research ownership structure consists of managerial ownership, government ownership, foreign ownership and family ownership. The population used is a non-financial company that listed in Indonesian Stock Exchange (BEI) research period 2012-2016. The number of samples used in this research is 242 data of the company year. Sampling technique used is purposive sampling. Data analysis used was multiple regression analysis method. The empirical result of this research indicate that managerial ownership has a positive but not significant effect on dividend policy; government ownership has a negative and significant effect on dividend policy; foreign ownership has a positive and significant effect on dividend policy; and family ownership has a negative and significant effect on dividend policy.

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oard Composition, Ownership Structure and Dividend Payout Policy: Evidence from PSX-100 Index of Pakistan

Journal of Business & Tourism ◽

10.34260/jbt.v5i1.114 ◽

2021 ◽

Vol 5 (1) ◽

pp. 55-73

Author(s):

MUHAMMAD NAVEED AHMAD ◽

FARMAN ULLAH KHAN ◽

YOUSAF KHAN

Keyword(s):

Ownership Structure ◽

Payout Policy ◽

Least Square ◽

Board Composition ◽

Dividend Payout ◽

Return On Equity ◽

Logistic Regression Models ◽

Ordinary Least Square ◽

Study Results ◽

Dependent Variables

The purpose of this study is to analyze the influence of board composition, ownership structure on dividend payout policy. Ordinary Least Square and Logistic regression models were applied to test the estimation in Pakistani KSE 100-index firms for the period of 2005 to 2014. Corporate Governance (board composition and ownership structure) were taken as independent variables, dividend payout / dividend decision as dependent variables. It is ascertained that the board size, executive director, institutional, foreign ownership and return on equity are significantly influenced on dividend payout /decision. Over study results evidenced that those firms who have higher profitable provide signal to the market to pay higher dividend in Pakistani firms and intended to resolve the agency problems issues.

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PENGARUH FAMILY OWNERSHIP, PERUBAHAN TARIF PAJAK DAN KEBIJAKAN HUTANG TERHADAP NILAI PERUSAHAAN

Jurnal Akuntansi Bisnis ◽

10.30813/jab.v9i2.885 ◽

2017 ◽

Vol 9 (2) ◽

Author(s):

Elfina Astrella Sambuaga

Keyword(s):

Ownership Structure ◽

Tax Reform ◽

Stock Exchange ◽

Family Ownership ◽

Corporate Debt ◽

Tax Rates ◽

Manufacturing Companies ◽

The Impact ◽

The Relationship ◽

Debt Policy

This study aims to provide empirical evidence related to the influence of family ownership, tax reform on corporate debt policy, and further prove the impact on the firm value.This study examined the effect of changes in tax rates in 2009 and 2010 on the relationship between family ownership structure and corporate debt policy. The population of this research is manufacturing companies listed in Indonesia Stock Exchange for 8 consecutive years (2006-2013), with the period of observation for 7 years (2007-2013). A period of 8 years was taken to see a company that is consistently listed on the Stock Exchange prior to the end of the observation period. The result of this study shows that tax reform from progressive tax rates to a flat rate does not affect the relationship between family ownership structure and corporate debt policy. In contrast to the year 2009, changing rate from 28% to 25% in late 2010 was a significant effect on the debt policy with the company of family ownership. Based on the results, it was found that family ownership and debt policy significantly affect the company's enterprise value. It can be concluded, the higher the family ownership, the company's value would be diminished. Instead, the company's value will increase when the company adds to its debt policy.Keywords : debt policy, family ownership, firm value, tax reform.

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The impact of board composition and ownership structure on dividend payout policy: evidence from Saudi Arabia

International Journal of Emerging Markets ◽

10.1108/ijoem-05-2021-0791 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Helmi A. Boshnak

Keyword(s):

Saudi Arabia ◽

Ownership Structure ◽

Dividend Policy ◽

Payout Policy ◽

Board Composition ◽

Dividend Payout ◽

Content Type ◽

Listed Firms ◽

Propensity To Pay ◽

The Impact

PurposeThis study examines the impact of board composition and ownership structure variables on dividend payout policy in Saudi Arabian firms. In particular, it aims to determine the effect of board size, independence and meeting frequency, in addition to chief executive officer (CEO) duality, and state, institutional, managerial, family, and foreign ownership on both the propensity to pay dividends and dividend per share for Saudi-listed firms over the period 2016–2019.Design/methodology/approachThe paper captures dividend policy with two measures, propensity to pay dividends and dividend per share, and employs a range of regression methods (logistic, probit, ordinary least squares (OLS) and random effects regressions) along with a two-stage least squares (2SLS) model for robustness to account for heteroscedasticity, serial correlation and endogeneity issues. The data set is a large panel of 280 Saudi-listed firms over the period 2016 to 2019.FindingsThe results underline the importance of board composition and the ownership structure in explaining variations in dividend policy across Saudi firms. More specifically, there is a positive relationship between the propensity to pay dividends and board-meeting frequency, institutional ownership, firm profitability and firm age, while the degree of board independence, firm size and leverage exhibit a negative relation. Further, dividend per share is positively related to board meeting frequency, institutional ownership, foreign ownership, firm profitability and age, while it is negatively related to CEO duality, managerial ownership, and firm leverage. There is no evidence that family ownership exerts an impact on dividend payout policy in Saudi firms. The findings of this study support agency, signalling, substitute and outcome theories of dividend policy.Research limitations/implicationsThis study offers an important insight into the board characteristic and ownership structure drivers of dividend policy in the context of an emerging market. Moreover, the study has important implications for firms, managers, investors, policymakers, and regulators in Saudi Arabia.Originality/valueThis paper contributes to the existing literature by providing evidence on four board and five ownership characteristic drivers of dividend policy in Saudi Arabia as an emerging stock market, thereby improving on less comprehensive previous studies. The study recommends that investors consider board composition and ownership structure characteristics of firms as key drivers of dividend policy when making stock investment decisions to inform them about the propensity of investee firms to pay dividends and maintain a given dividend policy.

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Company Ownership Structure, Legal Compliance and the Probability of Winning an Employment Lawsuit in China

Asian Journal of Law and Economics ◽

10.1515/ajle-2021-0033 ◽

2021 ◽

Vol 0 (0) ◽

Author(s):

Zhenxing Ke

Keyword(s):

Life Span ◽

Rule Of Law ◽

Significant Influence ◽

Ownership Structure ◽

Statistical Result ◽

District Courts ◽

Legal Compliance ◽

Private Companies ◽

The Rule Of Law ◽

Ownership Structures

Abstract This paper investigates empirically whether firm ownership structures contribute to varying levels of legal compliance, which ultimately influence the likelihood of winning a lawsuit. I hypothesize that private companies are more likely to lose employment lawsuits because the rule of law within the company is rarely established. Using collected 2756 employment judgments decided by district courts in Beijing between 2014 and 2018, I test this hypothesis against three other types of ownership structures in China: state-owned enterprises, wholly foreign-funded companies, and partly foreign-funded companies. The statistical result confirms that private companies are more likely to lose cases, thus supporting the proposed hypothesis. In addition, the company’s scale and the company’s life span also have a significant influence on the employment lawsuit result.

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PENGARUH LEVERAGE, MANAJEMEN LABA, DAN STRUKTUR KEPEMILIKAN TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN BUMN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2008 - 2012

Jurnal Akuntansi ◽

10.24964/ja.v1i2.15 ◽

2016 ◽

Vol 1 (2) ◽

Cited By ~ 1

Author(s):

Fajar Kusworo

Keyword(s):

Earnings Management ◽

Ownership Structure ◽

Firm Value ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Significant Positive Effect ◽

Public Ownership ◽

Government Ownership ◽

Simultaneous Testing ◽

Positive Effect

The purpose of this research was to determine the effect of leverage , earnings management , and ownership structure on firm value in state-owned companies . Based on a population of 18 state-owned companies listed on the Stock Exchange was taken 10 stateowned companies in 2008 to 2012 as the samples in this study according to the criteria of the study , a total of 50 years as a firm observational data . At the stage of data processing are affected data outliers firm by 2 years so the number of samples used in this study for 5 years amounted to 48 firm year . Data analysis was performed using linear regression analysis using SPSS for Windows 16.00. Simultaneous testing results show that leverage , earnings management , government ownership , and public ownership and a significant positive effect on firm value . Result partial test indicates that earnings management does not affect the value of the company , while leverage , government ownership , and public ownership negatively affect the value of the company .

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PENGARUH STRUKTUR KEPEMILIKAN SAHAM TERHADAP TRANSAKSI PADA PIHAK YANG MEMPUNYAI HUBUNGAN ISTIMEWA

El Dinar ◽

10.18860/ed.v2i1.2959 ◽

2015 ◽

Vol 2 (1) ◽

Author(s):

Dyah Puspasari ◽

Imam Subekti ◽

Endang Mardiati

Keyword(s):

Financial Institution ◽

Stock Exchange ◽

Family Ownership ◽

Managerial Ownership ◽

Public Ownership ◽

Government Ownership ◽

Negative Effects ◽

Positive Effects ◽

Related Party Transaction ◽

Ownership Effect

Abstract The objective of this study is to investigate the effect of ownership structure to the related party transaction and board directors’s compensation practice as moderating variable. This study uses managerial ownership, financial institution ownership, family ownership, government ownership, and public ownership as proxy of ownership structures and related party transaction (RPT) asset, liabilities, purchase, and sales as proxy of related party transaction (RPT). This research used 152 non financial companies listed in Indonesia Stock Exchange by using purposive sampling. The result of this study show that family ownership, managerial ownership have positive effects on RPT Asset, Liabilities, Purchase, and Sales. Whereas financial institution ownership and public ownership have negative effects on RPT Asset, Liabilities, Purchase, and Sales. Whereas government ownership not significant on RPT Asset, Liabilities, Purchase, and Sales. Results of other examination show that board director’s compensation will strengthen managerial ownership’ effect to the RPT Asset, Liabilities, Purchase, and Sales.

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