Title: Reciprocal Relationship between Capital Structure and Dividend Policy in Indonesia 2010 – 2012
Author: Ninnasi Muttaqiin
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This research aims to determine the reciprocal influence between capital structure and dividend policy in Indonesia for the research period from 2010 to 2012. Using the two-stage least squares method using capital structure factors and dividend payout ratio as endogenous variables, while institutional ownership, tangibility , growth opportunity, liquidity, profitability, business risk, firm size, and free cash flow as exogenous variables in the research. This research uses a population of all non-financial companies listed on the Indonesia Stock Exchange that have distributed cash dividends for three consecutive years. It is known that the sample of this research is fifty companies. The results of this research are that there is no reciprocal influence between capital structure and dividend policy. Apart from that, factors that have a significant influence on capital structure are institutional ownership, liquidity, firm size and free cash flow, while factors that have a significant influence on dividend policy are tangibility and firm size.
Keywords: capital structure, dividend policy, dividend payout ratio, institutional ownership, tangible assets, growth opportunity, liquidity, profitability, business risk, firm size, and free cash flow
Sources: http://repository.unair.ac.id/33601/
