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IJSTR >> Volume 5 - Issue 6, June 2016 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



Dividend Policy In Indonesia State Owned Enterprises

[Full Text]

 

AUTHOR(S)

Sulaeman Rahman Nidar, AA Gunawan

 

KEYWORDS

capital spending, sales growth, firm characteristics, fixed effects models, generalized least squares, recursive models, dividend policy, SOE

 

ABSTRACT

This study is an explanatory study to determine the effect of independent variables on the dependent variable. As the dependent variable is the dividend payout ratio. Meanwhile, the independent variable is the variable that is measured by the growth of the company's capital expenditure ratio proxy, state ownership, firm size, profitability, cash flow, and the ratio of dividends last year as a control variable. The study uses panel data with a sample of 46 state-owned companies in the form of a limited liability company engaged non-financial sector with the financial period 2005-2009. The sample selection was purposive sampling that samples deposited SOE dividends during the study period. Hypothesis testing using a fixed-effect regression analysis models. As for overcoming heteroskedasticity and autocorrelation using the method of generalized least squares (GLS). The results found that the company's growth variables and firm characteristics variables simultaneously significant effect on dividend policy. To model the dividend policy, partial, variable capital expenditures, capital structure, firm size, and cash-flow negative and significant to dividend payout ratio, while profitability and state ownership variables having an positive and significant to dividend payout ratio. The study also found that non-listed state-owned companies have an average dividend payout ratio lower than the listed SOEs.

 

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