Title: Family companies and dividend policy in Indonesia
Author(s): Rahmat Heru Setianto and Putri Kartika Sari (Airlangga University)
DOI: https://doi/org/10.20885/jsb.vol21.iss2.art1
ABSTRACT
This study aims to examine the effect of family firm characteristics namely; family ownership, family generation, and family members on dividend policy in Indonesia during the period 2010-2014. By employing regression technique on Indonesian public listed manufacturing firm the results suggest that family ownership has a positive effect on dividend payout ratio (DPR). The higher the family ownership the higher the dividend payment of the company. However, family generation has no significant effect on DPR. Meanwhile, family members have a positive effect on DPR, this result indicates that dividend payments are likely to be higher when more family members are involved in managing the company.
Keywords: family firm, dividend policy, and agency theory
