Foreign institutional investors and dividend policy in Indonesia

Purba, Sangapta Damarjati; Risfandy, Tastaftiyan; Muizzuddin, Muizzuddin; Nugroho, Muh Rudi

doi:10.1057/s41260-022-00259-z

Cited by 3 publications

(7 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Bernile et al (2018) showed that board gender diversity can affect company policy, as evidenced by the fact that firms with greater diversity tend to exhibit higher performance. Female directors can better represent the interests of shareholders, especially minority shareholders, and balance the interests of all stakeholders (Purba et al , 2022). Therefore, female board members serve as governance mechanisms for reducing agency problems (La Porta et al , 2000).…”

Section: Resultsmentioning

confidence: 99%

“…On the one hand, institutional investors may prefer dividend payouts because they can reduce companies’ agency problems (Cao et al , 2017; Setiawan et al , 2016). However, on the other hand, the extent of institutional investors’ involvement could diminish dividend payouts because investors use capital gains to avoid high dividend taxes in a country (Purba et al , 2022). We obtained no significant results for DAR and INFL.…”

Section: Resultsmentioning

confidence: 99%

“…It has also been suggested that board diversity contributes to better corporate governance (Adams and Ferreira, 2009). When females sit on boards of directors, opportunities for dividend payouts increase because female directors balance shareholders' interests more effectively, especially for minorities (Purba et al, 2022). In other words, female board members can improve company governance mechanisms, ultimately reducing agency problems (Risfandy et al, 2021).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…To examine the impact of female board members on commercial banks' dividends, we used a sample of 96 commercial banks listed on the stock exchanges of the five ASEAN-5 countries in 2015-2020. Dividend is defined herein as cash divided by net income, commonly represented by the dividend payout ratio (Duygun et al, 2018;Setiawan et al, 2016). Regarding gender diversity, following Purba et al (2022), we used the number of female directors as a proportion of the total number of directors. We also employed the country's legal (common law or civil law) system as an institutional environment variable that we hypothesized could moderate the gender-dividend nexus, following Ye et al (2019).…”

Section: Introductionmentioning

confidence: 99%

“…Many researchers have investigated the influence of women on boards of directors or the effect of gender diversity on company dividend payouts using within-country (Ain et al , 2021; Cristea and Cristea, 2017; Fairchild et al , 2014; Purba et al , 2022; Risfandy et al , 2021; Zainudin and Khaw, 2021) or cross-country samples (Cao et al , 2017; Chen et al , 2017; Mustafa et al , 2020; Ye et al , 2019). In this paper, we revisit the association between dividends and gender diversity based on data collected manually from commercial banks in the ASEAN-5 geopolitical and economic organization that covers Southeast Asia, including Indonesia, Singapore, Thailand, Malaysia and the Philippines.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Female directors, the institutional environment and dividend policy: evidence from ASEAN-5 commercial banks

Syahfitri

Risfandy

2023

SEF

Self Cite

View full text Add to dashboard Cite

Purpose This paper aims to investigate the impact of female directors on the dividend policies of 96 ASEAN-5 listed commercial banks between 2015 and 2020. Design/methodology/approach This paper developed an econometric model to assess the impact of female directors on the banks’ dividend policies. This paper regressed the payout variable on the female director, legal (institutional environment) variables and several control variables. This paper also considered the interaction between the female and legal variables to assess the moderating impact of the institutional environment. Findings This paper found that female directors positively affected dividend policy and that banks with female directors tended to pay dividends to balance stakeholders’ interests, especially for the minority. This paper also found that the influence of female directors was weaker in countries with strong institutional environments because greater legal protection for shareholders reinforced or replaced corporate governance mechanisms. Originality/value To the best of the authors’ knowledge, this is the first study to investigate gender diversity and its impact on dividend policy using data from ASEAN-5 countries.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Female directors, the institutional environment and dividend policy: evidence from ASEAN-5 commercial banks

Syahfitri

Risfandy

2023

SEF

Self Cite

View full text Add to dashboard Cite

show abstract

Influential-female-directors and dividend decisions: evidence from an emerging economy

Mandal,

Chatterjee,

Bandyopadhyay

2024

EDI

View full text Add to dashboard Cite

PurposeThis study introduces influential-female-directors as a board-gender-diversity variable that captures not only the female representation on the board but also their position on the informal-boardroom-hierarchy. Further, this study investigates whether such directors have a significant influence on the dividend-payout-decisions of leading firms in an emerging economy, India, where concentrated ownership is prevalent and explores the moderation effect they exert on dividend–ownership relationship.Design/methodology/approachThis study uses generalized methods of moments (GMM) to tackle the issues put forth by the sample of 450 firm-year observations.FindingsThis study finds that influential-female-directors have a significant influence on the dividend-payout-decisions of the firm. Additionally, the presence of female directors in the audit-committee makes the board more vigilant and encourages foreign institutional investors to expect more dividends. Furthermore, domestic institutional investors expect a return on their investments through share price appreciation rather than dividends, and the influence of promoters in dividend-payout-decisions is reduced in the presence of such directors.Originality/valueThis study pioneers the use of influential-female-directors as a board-gender-diversity metric and carries an in-depth analysis of the influence and moderation effect they exert on the dividend-payout-decisions of the board and the dividend expectations of different institutional investors, respectively.

show abstract

Institutional Ownership And Dividend Payout Policy In Kenya

Buigut

2023

JBMR

View full text Add to dashboard Cite

This purpose of this study is to investigate the effect of institutional ownership on dividend payout policy among listed firms in Kenya. The study used a sample of 40 Kenyan listed firms over the period of 2009-2019 collected from published audited financial statements. To test the hypothesized relationships, this study used the fixed effect and random effect panel data. The study used a sample of 40 Kenyan listed firms over the period of 2009-2019 collected from published audited financial statements. To test the hypothesized relationships, this study used the fixed effect and random effect panel data. The empirical findings indicate that foreign and domestic institutional ownerships are significant and positively associated with dividend payout policy

show abstract

Foreign institutional investors and dividend policy in Indonesia

Cited by 3 publications

References 32 publications

Female directors, the institutional environment and dividend policy: evidence from ASEAN-5 commercial banks

Female directors, the institutional environment and dividend policy: evidence from ASEAN-5 commercial banks

Influential-female-directors and dividend decisions: evidence from an emerging economy

Institutional Ownership And Dividend Payout Policy In Kenya

Contact Info

Product

Resources

About