FOREIGN INSTITUTIONAL SHAREHOLDERS AND CORPORATE PAYOUT POLICY

Rahmat Setiawan, Nova Christiana, Sanju Kumar Kumar Singh

Abstract


Abstract 

This study examines the effect of foreign institutional shareholders (FIS) on corporate payout policy. The study employs 97 Indonesian manufacturing firms listed on the Indonesia Stock Exchange period 2011-2015. Multivariate Tobit and Logit are employed to estimate the model. The result confirms the bird in the hand theory that FISs need assurance of their investments in the emerging market. FIS has a monitoring role over the firms since they have the ability to detect the firm’s quality and the agency problem within. The result confirms that the presence of the FIS in the firm has a positive and significant effect on both measures of corporate payout policy, dividend to net income and dividend to total asset. The presence of the FIS increases the propensity of the firm to pay a dividend.

 Abstrak

Penelitian ini menguji pengaruh pemegang saham institusi asing (FIS) terhadap kebijakan pembayaran perusahaan terhadap 97 perusahaan manufaktur Indonesia yang terdaftar di Bursa Efek Indonesia periode 2011-2015. Analisis multivariat menggunakan Tobit dan Logit. Hasil mengkonfirmasi bird in the hand theory bahwa FIS membutuhkan jaminan dalam berinvestasi di pasar negara berkembang. FIS memiliki kemampuan dalam mendeteksi kualitas dan masalah keagenan perusahaan sehingga secara tidak langsung FIS menjalankan fungsi monitoring. Hasil penelitian menunjukkan bahwa keberadaan FIS di perusahaan berpengaruh positif dan signifikan terhadap kebijakan dividen perusahaan. Kehadiran FIS meningkatkan kecenderungan perusahaan untuk membayar dividen.


Keywords


Foreign institutional shareholders; dividend payout; agency problem; Pemegang saham insitusional asing; kebijakan dividen; masalah keagenan

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References


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DOI: http://dx.doi.org/10.21002/jaki.2020.08



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