The Relationship Between Dividend Payout And Ownership Structure In Indonesia

Abstract

Alroza, Widho (2005). The Relationship between Dividend Payout and Ownership 'structure In Indonesia. Yogyakarta: Universitas Islam Indonesia. This research examines the relationship between dividend payout and ownership structure in Indonesia as main subject of this research. Also, it examines the relationship between dividend payout with earnings trend, past investment opportunity, debt equity, and past dividend payout in Indonesia as additional subject of this research. This research is based on data of the manufacturing companies listed on Jakarta Stock Exchange in the period of year 1999 up to year 2003. This research uses ownership structure, earnings intensity, lagged earnings intensity, debt equity, growth in sales intensity, and lagged dividend intensity as independent variables, and dividend intensity as dependent variable. This research uses proposed model by Jayesh Kumar (2004). The regression results of the model show that in the year 2000 up to year 2003, there were no significant influences of ownership structure, past earnings, past investment opportunity, and debt equity toward dividend payout. In the other hand, there were significant influences of current earnings and past dividend payout toward dividend payout in the year 2000 up to year 2003, which currentearnings positively influences dividend payout. Based on those results, investors who prefer to obtain profits from dividend payout rather than capital gain, can use current earnings and past dividend payout as objects for predicting the dividend payout.