Article Sidebar

Download
PDF
Statistic
Read Counter : 348 Download : 12639

Main Article Content

Abstract

This study aims to determine the effect of managerial ownership, institutional ownership and investment decisions on dividend policy with liquidity as an intervening variable in LQ45 companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2021. This study uses the causal associative method. This population is 45 companies using purposive sampling method . This research was conducted in LQ45 companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2021. The type of data used in this study is secondary data and analyzed using SPSS 25. The analysis technique in this study uses regression analysis and path analysis.The results of the analysis show that managerial ownership, institutional ownership and investment decisions partially affect dividend policy. Indirectly, liquidity can intervene in managerial ownership and also institutional ownership on dividend policy, while liquidity cannot intervene in investment decisions on dividend policy.

Keywords

Managerial Ownership Institutional Ownership Investment Decisions Liquidity Dividend Policy

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Sunaryo, D. (2022). Importance of Liquidity Indicators in Intervening the Dividend Policy. Ilomata International Journal of Tax and Accounting, 3(3), 272-289. https://doi.org/10.52728/ijtc.v3i3.504

References

  1. Afriani, F., Savitri, E., & Aprilia, R. (2013). Pengaruh Likuiditas, Leverage, Profitabilitas, Ukuran Perusahaan dan Growth Terhadap Kebijakan Dividen. Jurnal Manajemen STIE MDP, 3(1), 1–13. https://core.ac.uk/download/pdf/35319144.pdf
  2. Akindayomi, A., & Amin, M. R. (2022). Does business strategy affect dividend payout policies? Journal of Business Research, 151, 531–550. https://doi.org/10.1016/j.jbusres.2022.07.028
  3. Aksoy, M., Yilmaz, M. K., Tatoglu, E., & Basar, M. (2020). Antecedents of corporate sustainability performance in Turkey: The effects of ownership structure and board attributes on non-financial companies. Journal of Cleaner Production, 276, 124284. https://doi.org/10.1016/j.jclepro.2020.124284
  4. Alhazaimeh, A., Palaniappan, R., & Almsafir, M. (2014). The Impact of Corporate Governance and Ownership Structure on Voluntary Disclosure in Annual Reports among Listed Jordanian Companies. Procedia - Social and Behavioral Sciences, 129, 341–348. https://doi.org/10.1016/j.sbspro.2014.03.686
  5. Ali, H., & Hegazy, A. Y. (2022). Dividend policy, risk and the cross-section of stock returns: Evidence from India. International Review of Economics & Finance, 79, 169–192. https://doi.org/10.1016/j.iref.2022.02.002
  6. Barros, V., Guedes, M. J., Santos, P., & Sarmento, J. M. (2022). Does CEO turnover influence dividend policy? Finance Research Letters, 44, 102085. https://doi.org/10.1016/j.frl.2021.102085
  7. Barros, V., Verga Matos, P., Miranda Sarmento, J., & Rino Vieira, P. (2021). Do activist shareholders influence a manager’s decisions on a firm’s dividend policy: A mixed-method study. Journal of Business Research, 122, 387–397. https://doi.org/10.1016/j.jbusres.2020.08.048
  8. Basuki, A. T., & Prawoto, N. (2019). Analisis Regresi dalam Penelitian Ekonomi dan Bisnis (A. T. Basuki (ed.); 3rd ed.). RajaGrafindo Persada. https://www.rajagrafindo.co.id/produk/analisis-regresi-dalam-penelitian-ekonomi-bisnis-ilengkapi-aplikasi-spss-eviews/
  9. Berrospide, J. M., & Herrerias, R. (2015). Finance companies in Mexico: Unexpected victims of the global liquidity crunch. Journal of Financial Stability, 18, 33–54. https://doi.org/10.1016/j.jfs.2015.02.004
  10. Cao, Z., Chen, S. X., Harakeh, M., & Lee, E. (2022). Do non-financial factors influence corporate dividend policies? Evidence from business strategy. International Review of Financial Analysis, 82, 102211. https://doi.org/10.1016/j.irfa.2022.102211
  11. Chen, C.-J., Ruey-Shan Guo, Wang, S.-H., & Lin, Y.-H. (2022). Power distance diversification, ownership structure, and business group performance. Journal of Business Research, 151, 70–85. https://doi.org/10.1016/j.jbusres.2022.06.041
  12. Cruz, A. M., & Haugan, G. L. (2019). Determinants of maintenance performance: A resource-based view and agency theory approach. Journal of Engineering and Technology Management, 51, 33–47. https://doi.org/10.1016/j.jengtecman.2019.03.001
  13. Cui, Y., Zhang, Y., Guo, J., Hu, H., & Meng, H. (2019). Top management team knowledge heterogeneity, ownership structure and financial performance: Evidence from Chinese IT listed companies. Technological Forecasting and Social Change, 140, 14–21. https://doi.org/10.1016/j.techfore.2018.12.008
  14. Fabisik, K., Fahlenbrach, R., Stulz, R. M., & Taillard, J. P. (2021). Why are firms with more managerial ownership worth less? Journal of Financial Economics, 140(3), 699–725. https://doi.org/10.1016/j.jfineco.2021.02.008
  15. Fan, Y., Zhang, F., & Zhu, L. (2021). Do family firms invest more in pollution prevention strategy than non-family firms? An integration of agency and institutional theories. Journal of Cleaner Production, 286, 124988. https://doi.org/10.1016/j.jclepro.2020.124988
  16. Fernández-Portillo, A., Almodóvar-González, M., Sánchez-Escobedo, M. C., & Coca-Pérez, J. L. (2022). The role of innovation in the relationship between digitalisation and economic and financial performance. A company-level research. European Research on Management and Business Economics, 28(3), 100190. https://doi.org/10.1016/j.iedeen.2021.100190
  17. Ghozali, I. (2016). Aplikasi Analisis Multivariete dengan Program IBM SPSS 23 (I. Ghozali (ed.); 8th ed.). Badan Penerbit Universitas Diponegoro. http://kin.perpusnas.go.id/DisplayData.aspx?pId=218217&pRegionCode=UN11MAR&pClientId=112
  18. Gilje, E. P., Gormley, T. A., & Levit, D. (2020). Who’s paying attention? Measuring common ownership and its impact on managerial incentives. Journal of Financial Economics, 137(1), 152–178. https://doi.org/10.1016/j.jfineco.2019.12.006
  19. Grassetti, F., Mammana, C., & Michetti, E. (2022). Nonlinear dynamics in real economy and financial markets: The role of dividend policies in fluctuations. Chaos, Solitons & Fractals, 160, 112191. https://doi.org/10.1016/j.chaos.2022.112191
  20. Guthrie, G., & Hobbs, C. (2021). How managerial ownership and the market for corporate control can improve investment timing. Journal of Banking & Finance, 128, 106154. https://doi.org/10.1016/j.jbankfin.2021.106154
  21. Haque, M. Z., Qian, A., Hoque, M. R., & Lucky, S. A. (2022). A unified framework for exploring the determinants of online social networks (OSNs) on institutional investors’ capital market investment decision. Technology in Society, 70, 102061. https://doi.org/10.1016/j.techsoc.2022.102061
  22. Hussain, A., & Akbar, M. (2022). Dividend policy and earnings management: Do agency problem and financing constraints matter? Borsa Istanbul Review. https://doi.org/10.1016/j.bir.2022.05.003
  23. Iwasaki, I., Ma, X., & Mizobata, S. (2020). Corporate ownership and managerial turnover in China and Eastern Europe: A comparative meta-analysis. Journal of Economics and Business, 111, 105928. https://doi.org/10.1016/j.jeconbus.2020.105928
  24. Jiang, B., & Li, J. (2015). Research on the Impact of Ownership Structure to Operation Performance of the Chinese Listed Port Companies. International Journal of E-Navigation and Maritime Economy, 2, 63–72. https://doi.org/10.1016/j.enavi.2015.06.006
  25. Karminsky, A., & Rybalka, A. (2019). An analysis of links between the ownership structure and financial stability: case of Russian companies. Procedia Computer Science, 162, 496–502. https://doi.org/10.1016/j.procs.2019.12.016
  26. Kasahara, A., & Orihara, M. (2022). Family firms’ dividend policies: Evidence from a Japanese tax reform. Finance Research Letters, 45, 102199. https://doi.org/10.1016/j.frl.2021.102199
  27. Lee, Y. K. (2022). The effect of ownership structure on corporate payout policy and performance: Evidence from Korea’s exogenous dividends tax shock. Pacific-Basin Finance Journal, 73, 101763. https://doi.org/10.1016/j.pacfin.2022.101763
  28. Lin, S., Chen, R., Lv, Z., Zhou, T., & Jin, C. (2019). Integrated measurement of liquidity risk and market risk of company bonds based on the optimal Copula model. The North American Journal of Economics and Finance, 50, 101004. https://doi.org/10.1016/j.najef.2019.101004
  29. Liu, H. (2021). Does strengthening large shareholders’ cash flow rights reduce their expropriation motivation? Evidence from China’s dividend tax reforms. China Journal of Accounting Research, 14(4), 100206. https://doi.org/10.1016/j.cjar.2021.100206
  30. Liu, L., & Shu, H. (2022). Mandatory dividend policy and perk consumption: Evidence from state-owned business groups in China. Journal of International Financial Markets, Institutions and Money, 77, 101536. https://doi.org/10.1016/j.intfin.2022.101536
  31. Ly, K. C., & Shimizu, K. (2018). Funding liquidity risk and internal markets in multi-bank holding companies: Diversification or internalization? International Review of Financial Analysis, 57, 77–89. https://doi.org/10.1016/j.irfa.2017.12.011
  32. Marks-Bielska, R. (2021). Conditions underlying agricultural land lease in Poland, in the context of the agency theory. Land Use Policy, 102, 105251. https://doi.org/10.1016/j.landusepol.2020.105251
  33. Meilita, W., & Rokhmawati, A. (2018). The Effect of Managerial Ownership, Institutional Ownership, Foreign Ownership, Individual Ownership, Debt and Dividend Policy of Previous Years Influence on Dividend Policy. Jurnal Tepak Manajemen Bisnis, 9(2). https://jtmb.ejournal.unri.ac.id/index.php/JTMB/article/view/4916
  34. Mishra, C. S. (2022). Does institutional ownership discourage investment in corporate R&D? Technological Forecasting and Social Change, 182, 121837. https://doi.org/10.1016/j.techfore.2022.121837
  35. Nguyen, T. T. M., & Tran, Q. T. (2022). Democracy and dividend policy around the world. The North American Journal of Economics and Finance, 62, 101713. https://doi.org/10.1016/j.najef.2022.101713
  36. Norvaišienė, R., & Stankevičienė, J. (2014). Impact of Companies’ Internal Factors on Stock Liquidity in Baltic Markets. Procedia - Social and Behavioral Sciences, 156, 543–547. https://doi.org/10.1016/j.sbspro.2014.11.237
  37. Park, H., Noh, J.-H., Pedersen, M., & Lee, S. (2022). What are the determinants and managerial motivations for employee ownership in retirement pension plans? The North American Journal of Economics and Finance, 59, 101560. https://doi.org/10.1016/j.najef.2021.101560
  38. Paula Monteiro, A., Vale, J., Leite, E., Lis, M., & Kurowska-Pysz, J. (2022). The impact of information systems and non-financial information on company success. International Journal of Accounting Information Systems, 45, 100557. https://doi.org/10.1016/j.accinf.2022.100557
  39. Rhou, Y., Li, Y., & Singal, M. (2019). Does managerial ownership influence franchising in restaurant companies? International Journal of Hospitality Management, 78, 122–130. https://doi.org/10.1016/j.ijhm.2018.11.019
  40. Santoso, S. (2014). Statistik Non Parametrik Konsep dan Aplikasi dengan SPSS (1st ed.). Elex Media Komputindo. https://opac.perpusnas.go.id/DetailOpac.aspx?id=889344
  41. Shan, Y. G., Tang, Q., & Zhang, J. (2021). The impact of managerial ownership on carbon transparency: Australian evidence. Journal of Cleaner Production, 317, 128480. https://doi.org/10.1016/j.jclepro.2021.128480
  42. Siganos, A. (2022). Does the stock market influence investor everyday decisions? The case of parking violations. International Review of Financial Analysis, 82, 102164. https://doi.org/10.1016/j.irfa.2022.102164
  43. Simanjuntak, D. (2019). Pengaruh Investasi, Kepemilikan Manajerial, Kepemilikan Institusional, Kebijakan Hutang, dan Profitabilitas Terhadap Kebijakan Dividen Pada Perusahaan Manufaktur Yang Terdaftar di Bursa Efek Indonesia 2011-2017 [Universitas Negeri Semarang]. http://lib.unnes.ac.id/22351/1/7211411088-s.pdf
  44. Solomon, S. J., Bendickson, J. S., Marvel, M. R., McDowell, W. C., & Mahto, R. (2021). Agency theory and entrepreneurship: A cross-country analysis. Journal of Business Research, 122, 466–476. https://doi.org/10.1016/j.jbusres.2020.09.003
  45. Stereńczak, S., & Kubiak, J. (2022). dividend policy and stock liquidity: lessons from Central and eastern europe. Research in International Business and Finance, 101727. https://doi.org/10.1016/j.ribaf.2022.101727
  46. Sugiyono. (2019). Metode Penelitian Kuantitatif Kualitatif dan R&D (I). Alfabeta. https://cvalfabeta.com/product/metode-penelitian-kuantitatif-kualitatif-dan-rd-mpkk/
  47. Vijayakumaran, R. (2021). Impact of managerial ownership on investment and liquidity constraints: Evidence from Chinese listed companies. Research in International Business and Finance, 55, 101321. https://doi.org/10.1016/j.ribaf.2020.101321
  48. Wang, K. T., & Sun, A. (2022). Institutional ownership stability and corporate social performance. Finance Research Letters, 47, 102861. https://doi.org/10.1016/j.frl.2022.102861
  49. Xu, J., & Huang, H. (2021). Pay more or pay less? The impact of controlling shareholders’ share pledging on firms’ dividend payouts. Pacific-Basin Finance Journal, 65, 101493. https://doi.org/10.1016/j.pacfin.2020.101493
  50. Yeo, H. (2016). Solvency and Liquidity in Shipping Companies. The Asian Journal of Shipping and Logistics, 32(4), 235–241. https://doi.org/10.1016/j.ajsl.2016.12.007
  51. Yu, X., Wang, Y., Chen, Y., & Wang, G. (2021). Dividend payouts and catering to demands: Evidence from a dividend tax reform. International Review of Financial Analysis, 77, 101841. https://doi.org/10.1016/j.irfa.2021.101841
  52. Yusuf, F., Yousaf, A., & Saeed, A. (2018). Rethinking agency theory in developing countries: A case study of Pakistan. Accounting Forum. https://doi.org/10.1016/j.accfor.2018.10.002
  53. Zapparoli, L., Paulesu, E., Mariano, M., Ravani, A., & Sacheli, L. M. (2022). The sense of agency in joint actions: A theory-driven meta-analysis. Cortex, 148, 99–120. https://doi.org/10.1016/j.cortex.2022.01.002