Corporate Governance and Dividend Policy in Indonesia Kharis Raharjo (a*), Grahita Chandrarin (b), and Harmono (b)
a) Students in the doctoral program of economics, Unmer Malang, Jalan Terusan Dieng No. 62-64 Klojen, Malang, East Java 65146, Indonesia
* kharisraharjo82[at]gmail.com
b) lecturer in the doctoral program of economics, Unmer Malang, Jalan Terusan Dieng No. 62-64 Klojen, Malang, East Java 65146, Indonesia
Abstract
Dividends and corporate governance are linked. What needs to be clarified is the nature of the relationship: Do dividends complement, replace or result from governance practices? In that sense, governance is a set of mechanisms for decent returns to investors, and high dividends prove that the mechanisms are working. This study aims to investigate the results and alternative models of the relationship between dividends and corporate governance. The sample is a manufacturing company listed on the Indonesia Stock Exchange for 2017-2021. The variables consist of corporate governance and dividend policy, as well as ROI, beta, sales growth, and size as control variables. The data collection method uses financial and annual reports of manufacturing companies obtained on the IDX web. Methods of data analysis using regression analysis. The result is that dividends are an outcome of corporate governance.
