Institutional Ownership, Political Connestions and Dividend Payment

Abstract

This study aims to examine the effect of institutional ownership and differences in the average dividend payout policy in the presence of a political connection variable. The population in this study are all companies listed on the Indonesia Stock Exchange in 2008-2017. The sample in this study was based on purposive sampling. The sample of this study were 1157 observations. The analytical method used is a dummy covariance analysis (ANCOVA) regression model. The results showed that institutional ownership had a coefficient value of 0.039768. political connections have a coefficient value of 0.042068. That is, institutional ownership and political connections have a positive influence on dividend payment policies in Indonesia.

Dividend Policy Determinants of Islamic vs Conventional Companies: is there a Difference?

“…The ownership structure plays a role in overseeing every company decision, including the company's financial decisions, especially those made by management that can affect the company's dividend policy (Manneh & Naser, 2015), research conducted Yunita & Yulianto, (2020) and Yusof & Ismail (2016) states that institutional ownership of shares has a positive effect on the company's dividend policy. H4 :Company ownership has a positive effect on dividend policy…”