The motives behind dividend policy

The puzzle for dividend policy in Indonesia is still remain since the firms have uncertain distribution for dividends to their shareholders. The objectives of this study are testing the free cash flow theory, life cycle theory, and catering theory with 139 firms as samples which is listed in Indonesia Stock Exchange for period of 2010 to 2015. This study finds that, firms in Indonesia are not at mature level and there is an existence for free cash flow effect on dividend payers with lower debt only, while catering effect is generally exist for firms as dividend payers. Furthermore, since the firms as non dividend payers are on growth level then they are generally use their profit and capital gain includes debts in purposes of investment activities.peer-reviewe

The capital structure : is debt just a policy or requerement?

The issue about debt as part of capital structure is unclear in context of trade off theory and pecking order theory in term to identify whether it is just a policy or requirement for the firms. The objective of this study is to identify the underlie theories on firms capital structure with its determinant. This study conducts logistic regression with sample of 148 public firms listed in Indonesia Stock Exchange for period of 2011 to 2015. The result of analysis shows profitability, firm size, tangibility, and share price have relationship with capital structure. On these results, the study reports firms with higher total debt ratio shall prefer pecking order model in determining capital structures, and firms with higher long term debt ratio shall prefer pecking order model although the result indicates the agency conflict plays role in determining capital structures, while firms with lower total debt ratio and firms with lower long term debt ratio shall prefer trade off model for capital structures.peer-reviewe

Dampak Kebijakan Investasi Dan Kebijakan Pendanaan Terhadap Kebijakan Dividen

Investors as shareholder has motivation for increasing their wealth through dividend that they would received or for increasing their investment value through increasing of their share in the market. Financing decision and investment decision is the very important information for investors, because these decisions are the basic decisions to reach the net earnings target and then become a base to determine the dividend payment. This study had samples for 270 companies in period of 2009 till 2011, where the method of analysis for hypothesis testing is using logistic regression method. This study found that, partially, the financing decision had significant relationships to dividend policy. And as general, this study found that, the samples by this study, tend to use less external financing but had more tangible assets

Laba Per Saham dan Ukuran : Karakteristik Pembayar Dividen ?

Dividend is the main component of return that is very expected by investors, beside of capital gain. Also, the size of company could become as contribute variable to determine the amount of dividend payment. This study had samples for 378 companies listed in Indonesia Stock Exchange for period of 2009 till 2011, conducting logistic regression analysis and paired samples t test. The result of study shows that, earnings per share had significant relationship with the amount of dividend payent, while size of company had not. The controversy of size's result is analyzed further based on companies who had paid the dividend, and found that, size of company is one of characteristics of companies who paid dividend. More analysis conducted to earnings per share, it is found that, companies who paid dividend have characteristics such as higher net income and less outstanding shares. In the last confirmation, this study found that, companies who always paid dividend were not a type of cash cow companies

Efek Waktu Pasar Dan Kebijakan Investasi Terhadap Struktur Modal

The capital structure policy by an entity is still a question specially in the context of investment policy and if related to market timing. The question is still exist because the entity faced by two options of financing which are internal financing (capital) and external financing (debt). This study is using data from the samples of 241 entities listed in Indonesia Stock Exchange in period of 2009 till 2012 making the total of observed data are 964. Conducting multiple regression analysis, this study conclude that, the effect of pecking order, trade off and market timing are not absolute for all conditions of entities, because the entities will take decision for capital structure policy based on its conditions such as internally or externally. In this case, the external condition is referring to capital market

Does Maturity Signals High Risk and High Return?

The objective of this study is to examine the interaction between firm maturity and firm growth opportunities over risk and its impact on returns. This study uses 135 firms listed in Indonesia Stock Exchange during 2010 to 2016 as sample which gives 945 as total observed data. This study conducts path analysis in term for hypothesis testing and finds that firm maturity has significant role to increase the risk which gives impact on increasing the returns. In context of Indonesian firms, the findings imply that mature firms will have higher risk and higher returns

Determinant Capital Structure and Profitability Impact (Study of Listed Company in Indonesian Stock Exchange)

Profit is primary factor to be achieved by every companies. To achieve this profit, companies must empower all of its resources optimally. The problem arise when the resource is insufficient, and companies decide to obtain debt with consideration of profitability and risk of bankruptcy. This research using debt equity and debt asset ratio as indicators for capital structure, where growth, size, tangibility and degree of operating leverage as its determinant. For profitability, this research using return on asset and return on equity. Samples of research are 247 companies in period 2009 to 2011. With path analysis, this research finds that size negative significant to DAR, DOL negative significant to DER, DAR negative significant to ROA, and DER negative significant to ROE. Keywords : determinant capital structure, profitabilit

Market reaction and fundamental signal in Indonesia

The random reaction in capital market by different perceptions and other factors makes it difficult for investors to get their optimum return. The objective of this study is to provide an empirical evidence about how the market will react by fundamental signal from the perspective of life cycle theory, free cash flow theory, and bird in the hand theory. The study presents the analysis of covariate for hypotheses testing with 241 firms as the sample which are listed in Indonesia Stock Exchange for period 2010–2015. This study finds that the life cycle theory and free cash flow theory are not absolute theories to explain the market reaction for any firms, because each firm has its own characteristics. The findings show that share prices shall react differently depending on each characteristics of the firm. The bird in the hand theory seems applicable in any case of firms, since the informational contents by dividend can deliver good signal to investors in capital market. Excluding the smaller and younger firms, this study proves that dividend is still a better way in determining the reaction of share prices, since each type of firms has its own types of dividend payers with different share prices