This study aims to analyze the simultaneous relation between dividend
payout and leverage along the factors influence them. Dividend payout is measured
by dividend payout ratio, while leverage is measured by debt to asset ratio. The
factors influencing these two variables are family control, size, profitability and
cash ratio.
The data used in the study is secondary data obtained from the stock
exchange of each ASEAN-5 country. The sample consists consumer products sector
companies listed on the ASEAN-5 stock exchanges during 2014-2016 period. The
analysis method used is Two Stage Least Squares (2SLS) to test the simultaneous
relation.
The result shows that dividend payout and leverage have simultaneous
relation and give negative effect. Family control, size and profitability give
insignificant effect to dividend. Family control and profitability give insignificant
effect, while cash ratio gives negative effect to leverage
