Detail Cantuman

Abstract: Dividend payout policy has proved to be a complicated issue in the financial management
literature that leads to the issuance of different arguments and theories explaining the facts about dividend
ratio. The prime objective of the current study is to explore the impact of corporate governance on dividend
payout ratio. In order to investigate the linkage between corporate governance and dividend payout ratio,
data of four fiscal years (2013-2016) was extracted from annual reports of Indonesian publicly listed
companies. The study examines the impact of ownership structure and corporate governance mechanisms
on dividend payout ratio using panel data regression model. The findings of the study indicate that board
independence, board size, institutional ownership, size and earnings before interest and tax are positive;
whereas the CEO duality, managerial ownership, ownership concentration and leverage are in negative
relation with dividend payout ratio.
JEL Classifications: G30, G32
Keywords: Corporate governance, dividend payout ratio, Indonesia, non-financial firm