Analysis of Corporate Governance, Firm Specific Factors that Influence Dividend Policy on the Indonesian Stock Exchange Sharia Capital Market: Study on Merged Companies in Jakarta Islamic Index

Desmiza Desmiza, Rosmini Ramli

Abstract


This research aims to examine the influence of corporate governance, represented by institutional ownership, board independence, and board size, as well as firm-specific factors, represented by the debt-to-asset ratio, debt-to-equity ratio, sales growth, and firm size, on dividend policy in companies listed on the Jakarta Islamic Index. The sample consists of 30 companies included in the Jakarta Islamic Index during the 2018-2022 period, yielding 240 units of analysis. The study utilizes secondary data, and the data analysis is conducted through multiple regression techniques. The results of the hypothesis testing indicate that institutional ownership, debt-to-asset ratio, debt-to-equity ratio, and sales growth significantly influence dividend policy. In contrast, board independence, board size, and firm size do not have a significant impact on dividend policy.

Keywords


Dividend Payout Ratio; Corporate Governance; Firm-Specific Factors; Multiple Regression; Jakarta Islamic Index.

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DOI: http://dx.doi.org/10.33021/firm.v9i2.5555

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