Ownership Structure and Dividend Policy at LQ45 Companies of the Indonesian Stock Exchange

Abstract

This study aims to examine the effect of ownership structure on dividend policy. The independent variable used in this study is the ownership structure which is divided into managerial stock ownership (MSO) and institutional stock ownership (INST). The dependent variable used is the dividend policy measured using the dividend payout ratio (DPR). The moderating variable in this research is BUMN company. The sample used in this study is companies listed on the LQ45 stock market index on the Indonesia Stock Exchange (IDX) in the 2016-2018 period. The number of samples obtained was 45 companies. This study uses secondary data in the form of annual financial reports that are accessed through the official website of the IDX. Techniques for analyzing data are using multiple linear regression methods and SPSS data processing applications. Empirical results of this study indicate that managerial stock ownership (MSO) has a negative and not significant effect; then for institutional ownership (ISO) positive and significant effect; Managerial share ownership (MSO) moderated by BUMN companies has a negative and not significant effect; meanwhile, for institutional share ownership (ISO) has positive and significant effect on dividend policy.