Agency Cost dan Kebijakan Dividen (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia)

Manufacturing companies in Indonesia are large-scale companies and dominate the Indonesia Stock Exchange. The number of companies listed on the stock exchange is increase every year, which results in more people having the opportunity to own a company. The spread of more investors who own the company makes conflict between owners even higher. The purpose of this study is to determine the effect of agency cost proxied by insider ownership, dispersion of ownership, free cash flow, and collateralizable assets on dividend policies of manufacturing companies in Indonesia. Data in the form of secondary data in the form of financial reports and annual reports for the period 2012-2019. The data used multiple linear regression statistical analysis techniques. The results of this study show that agency cost, which is proxied by dispersion ownership, free cash flow and collateralizable assets, has a positive effect on dividend policy. A firm in its operational activities, carries out agency relationships. Agency problems arise when an agent acts not in accordance with the principal's interests, which causes a conflict of interest between the principal and agent. Agency problems will increase agency cost. The agency problem can be reduced by the dividend payment mechanism, namely by increasing the proportion of dividend payments from company profits for stockholders. In contrast to insider ownership which does not affect dividend decisions because the percentage of company ownership owned by insiders is limited in Indonesia.

Download Full-text

Analyzing the Link Between Agency Problems, Governance and Control Attributes for Pakistan

e-Finanse ◽

10.1515/fiqf-2016-0029 ◽

2017 ◽

Vol 13 (3) ◽

pp. 43-65 ◽

Cited By ~ 1

Author(s):

Ahmad Ghazali ◽

Ahmad Raza Bilal

Keyword(s):

Corporate Governance ◽

Cash Flow ◽

Agency Costs ◽

Stock Exchange ◽

Agency Problems ◽

Agency Cost ◽

Free Cash Flow ◽

Listed Firms ◽

Utilization Ratio ◽

Sound Policy

AbstractThis research attempts to analyze the relationship between agency, control and corporate governance attributes for a sample of 267 firms listed on the Pakistan Stock Exchange (PSX) from 2005 to 2008. The results show that a) Pakistani listed firms are facing high agency costs problems in contrast to established markets. b) Factors are observed important to having strong effect on mitigating agency costs levels: corporate dividend policy, degree of board independence, and institutional ownership. c) Corporate governance factors reduce discretionary expenditure ratio, increase assets utilization ratio and free cash flow ratio. d) Control variables increases the asset utilization ratio and decreases the free cash flow and increases the managers’ performance (Tobin’s Q ratio). e) Ownership attributes regulate free cash flow and decrease the discretionary expenditure ratio. The outcomes of this research lead to the proposed use of recommended governance, control and ownership attributes to overcome agency problems and a sound policy for better corporate governance (better management of agency cost issues) for listed firms.

Download Full-text

Studying the Effect of Financial Leverage on Agency Cost Resulting from Free Cash Flow of Manufacturing Companies Accepted in Tehran Stock Exchange

Singaporean Journal of Business Economics and Management Studies ◽

10.12816/0010939 ◽

2014 ◽

Vol 3 (3) ◽

pp. 1-9 ◽

Cited By ~ 1

Author(s):

Mahmoodreza Mostaghimi ◽

Esmaeil Ramezanpour ◽

Amir Hossein Nozari

Keyword(s):

Cash Flow ◽

Stock Exchange ◽

Agency Cost ◽

Free Cash Flow ◽

Manufacturing Companies ◽

Financial Leverage

Download Full-text

PENGARUH AGENCY COST, RETURN ON EQUITY (ROE), DAN FREE CASH FLOW TERHADAP DIVIDEND PAYOUT RATIO PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI PERIODE 2010-2019

Jurnal TAMBORA ◽

10.36761/jt.v5i2.1127 ◽

2021 ◽

Vol 5 (2) ◽

pp. 66-73

Author(s):

Siti Sarah Hasibuan ◽

Lukmanul Hakim2

Keyword(s):

Cash Flow ◽

Stock Exchange ◽

General Meeting ◽

Agency Cost ◽

Free Cash Flow ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Dividend Payout ◽

Return On Equity ◽

Insignificant Effect

The dividend of a company is always a concern for shareholders to invest. Information regarding the state of the company can be seen in the financial statements. This study aims to examine the effect of Managerial Ownership, Return On Equity and Free Cash Flow on the Dividend Payout Ratio in manufacturing companies listed on the Indonesia Stock Exchange for the 2010-2019 period. According to Sartono, dividends are profits obtained by the company and distributed to shareholders. Decisions regarding the amount of dividends will be determined at the General Meeting of Shareholders (GMS). The results of this study indicate that Managerial Ownership has a positive and significant effect on the Dividend Payout Ratio. Return On Equity has a negative and insignificant effect on the Dividend Payout Ratio and Free Cash Flow has a positive and insignificant effect on the Dividend Payout Ratio.

Download Full-text

Dividend Payout Ratio: Persoalan Free Cashflow, Debt To Equity Ratio, Kepemilikan Institutional, Investment Opportunity, Dan Kesejahteraan Karyawan

Liquidity ◽

10.32546/lq.v6i1.35 ◽

2017 ◽

Vol 6 (1) ◽

pp. 1-11

Author(s):

Nurlis Azhar ◽

Helmi Chaidir

Keyword(s):

Cash Flow ◽

Significant Influence ◽

Stock Exchange ◽

Institutional Ownership ◽

Free Cash Flow ◽

Manufacturing Companies ◽

Flow Ratio ◽

Prediction Ability ◽

Employee Welfare ◽

Equity Ratio

This study was conducted to examine the effect of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (Parliament) partially on manufacturing companies listed on Indonesia Stock Exchange period 2011-2015. In addition, to test the feasibility of regression model, the influence of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (DPR) simultaneously at manufacturing company listed on Bursa Indonesia Securities period 2011-2015. The population in this study are 146 manufacturing companies that have been and still listed in Indonesia Stock Exchange period 2011-2013. The sampling technique used was purposive sampling and obtained sample of 42 companies. Data analysis technique used is by using multiple linear regression test. The results showed that Free Cash Flow Ratio, no significant effect on Divident Payout Ratio (DPR). Debt Equity Ratio (DER) has a negative and significant influence on Divident Payout Ratio (DPR), Institutional Ownership has a significant positive effect on Divident Payout Ratio (DPR), Employee Welfare and Price Earning Ratio (PER) has a positive and significant influence on the Divident Payout Ratio ). Simultaneously Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) give effect to Divident Payout Ratio. The prediction ability of the five variables to the Divident Payout Ratio (DPR) is 21.3% as indicated by the adjusted R square of 0.271 while the remaining 79.7% is influenced by other factors not included in the research model.

Download Full-text

The effect of intellectual capital and dividend policies on a company’s value with free cash flow as a moderation variable: Evidence from manufacturing companies listed on the Indonesia Stock Exchange (IDX)

Facing Global Digital Revolution ◽

10.1201/9780429322808-37 ◽

2020 ◽

pp. 156-160

Author(s):

Winarsih ◽

Wahyu Budi Lestari ◽

Dyah Nirmala A. Janie

Keyword(s):

Cash Flow ◽

Intellectual Capital ◽

Stock Exchange ◽

Free Cash Flow ◽

Manufacturing Companies ◽

Dividend Policies

Download Full-text

Free cash flow and earnings management: board of commissioner, board independence and audit quality

Corporate Ownership and Control ◽

10.22495/cocv14i4c1art10 ◽

2017 ◽

Vol 14 (4) ◽

pp. 284-288 ◽

Cited By ~ 4

Author(s):

Yulius Kurnia Susanto ◽

Arya Pradipta ◽

Indra Arifin Djashan

Keyword(s):

Earnings Management ◽

Cash Flow ◽

Sampling Method ◽

Audit Quality ◽

Flow Problem ◽

Stock Exchange ◽

Free Cash Flow ◽

Board Independence ◽

Manufacturing Companies ◽

Management Board

The purpose of the research is to provide empirical evidence about the effect of board of commissioner, board independence and audit quality on relationship between free cash flow and earnings management. This research used 290 data from manufacturing companies listed in Indonesia Stock Exchange, selected using purposive sampling method, during 2012 until 2014. Earnings management calculated using Modified Jones (1991) Model include ROA from Kothari et al. (2005). Data for the research were analyzed using multiple regression analysis. The results of the research showed that the effect of board of commissioner, board independence and audit quality on relationship between free cash flow and earnings management is negative and significant. Board of commissioners, board independence and audit quality can reduce earnings management problems arising from free cash flow. Board of commissioners, board independence and audit quality oversee the opportunistic behavior of managers that arises from free cash flow problem.

Download Full-text

PENGARUH FREE CASH FLOW TERHADAP UTANG

Media Riset Akuntansi Auditing & Informasi ◽

10.25105/mraai.v4i2.1857 ◽

2017 ◽

Vol 4 (2) ◽

pp. 107

Author(s):

Heru Nurwahyudi ◽

Aida Ainul Mardiyah

Keyword(s):

Cash Flow ◽

Hypothesis Test ◽

Agency Cost ◽

Free Cash Flow ◽

Third Party ◽

Manufacturing Companies ◽

Font Size ◽

Public Companies ◽

Agency Relationship ◽

Debt Policy

The objective of this research is to analysis and giving the empirical evidence about the free cas flow and the effect of it for debt policy of public companies in Indonesia. This research was using 66 samples of manufacturing companies in the year 2000 and 90 sample of manufacturing in the year 2001. This sample was elected based on purposive sampling, the hypothesis test is the simple tinier regres-sion.The result of this research showed that hypothesis were suppo4ted, there are influence of free cash flow to the debt policy. In the agency relationship there is differences interest between the principal and the manager also created agency problems that finally also create agency cost. In the shareholders (agents) point of view, this can be minimize by the third party (debtho!der) whose come by the debt policy. Increasing financing with debt will reduce the conflict between the sharehold-ers and the management.Keywords: Free cash flow, debt

Download Full-text

DETERMINAN EARNING MANAGEMENT DAN PENGARUHNYA TERHADAP NILAI PERUSAHAAN (Studi Empiris Pada Perusahaan Manufaktur yang terdaftar di BEI Periode 2017-2018)

JURNAL AKUNTANSI DAN KEUANGAN DAERAH ◽

10.52062/jakd.v14i2.1455 ◽

2020 ◽

Vol 14 (2) ◽

Author(s):

Derwin Juan Sagrim ◽

Syaikhul Falah ◽

Bill J.C Pangayow

Keyword(s):

Cash Flow ◽

Firm Value ◽

Stock Exchange ◽

Multiple Regression Model ◽

Free Cash Flow ◽

Earning Management ◽

Board Independence ◽

Manufacturing Companies ◽

Investment Opportunity Set ◽

Investment Opportunities

This research has aim to examine the influence of investment opportunities set, board independence, and free cash flow toward firm value with earning management as the intervening variable in manufacturing companies listed on Indonesian Stock Exchange for period 2017 to 2018. This study used a sample of 43 companies with 6 years’ time period. The method of analysis is multiple regression model with further done with path analysis using SPSS 23. These results indicate that investment opportunities set and free cash flow have a significant direct effect on the value of the firm, while investment opportunity set and board independence have the indirect effect. Investment opportunities set, board independence, free cash flow and earning management simultaneously affect the firm value with adjusted R- squared 55.3%. Overall this study indicates that earning management has important role as the intervening variable betweeninvestment opportunities set, board independence & free cash flow relating to firm value.

Download Full-text

Effect of Bid Ask Spread, Profitability, and Free Cash Flow on Earning Management

Jurnal Akuntansi ◽

10.24912/ja.v23i3.613 ◽

2020 ◽

Vol 23 (3) ◽

pp. 449

Author(s):

Nurainun Bangun

Keyword(s):

Earnings Management ◽

Cash Flow ◽

Sampling Method ◽

Stock Exchange ◽

Free Cash Flow ◽

Earning Management ◽

Manufacturing Companies ◽

Purposive Sampling ◽

Bid Ask Spread

The purpose of this study was to determine the effect of bid ask spread, profitability, and free cash flow on earnings management. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. The sampling method used was purposive sampling with predetermined criteria. Earning management is determined by the accruals method. The results of this study stated that the bid ask spread did not have a significant effect on earnings management, while profitability and free cash flow had a significant effect on earnings management.

Download Full-text

The Effect of Firm Sizes, Profitability, Dividend Policy, Asset Structure, Sales Growth and Free Cash Flow on Debt Policy

AMAR (Andalas Management Review) ◽

10.25077/amar.4.1.100-119.2020 ◽

2020 ◽

Vol 4 (1) ◽

pp. 100-119

Author(s):

Ria Nurdani ◽

Ika Yustina Rahmawati

Keyword(s):

Cash Flow ◽

Dividend Policy ◽

Stock Exchange ◽

Secondary Data ◽

Financial Statements ◽

Free Cash Flow ◽

Sales Growth ◽

Manufacturing Companies ◽

Company Growth ◽

Debt Policy

The study aims to examine the effect of company size, profitability, dividend policy, asset structure, company growth and free cash flow on debt policy. The object of this study uses manufacturing companies listed on the Indonesia Stock Exchange. The data used is secondary data in the form of annual financial statements for the 2015-2018 period. The collection technique used in this study was purposive sampling while the data analysis techniques used in this study were descriptive statistics, classic assumption tests, multiple regression analysis and hypothesis testing. The analysis show that the size of the company has a negative and not significant effect on debt policy, profitability has a negative and significant effect on debt policy. Dividend policy variables and asset structure has a negative and significant effect on debt policy. While sales growth and free cash flow has no effect on debt policy.

Download Full-text