Ownership Structure on Dividend Policy in The Indonesian Stock Exchange

Vincent (University of Surabaya, Indonesia)
Liliana Ingrit Wijaya (University of Surabaya, Indonesia)
Werner Ria Murhadi (University of Surabaya, Indonesia)

Journal of Entrepreneurship & Business
Vol. 4 No. 2 (2023): Journal of Entrepreneurship and Business (June)

Purpose: This research analyses how ownership structure affects dividend policy. Method: Quantitative with a pool least square (PLS) regression model was used as a research method, and the research sample was drawn from all non-financial sector companies registered in IDX from 2017 to 2021. Independent variables such as family ownership, institutional ownership, and concentration ownership. This research also has a control variable such as return on assets, debt to equity ratio, firm size, firm age, free cash flow, and volatility (business risk). Result: This research found that family ownership, institutional ownership, concentration ownership, return on assets, firm size, age of firm, free cash flow, and volatility (business risk) all have a significant effect on dividend yield, but the debt to equity ratio has no effect.