Ownership Structure and Dividend Policy in non-Financial Company

Indra Jatmiko, Retno Kusumastuti


This study aims to analyze the influence of ownership structure on dividend policy in non- financial companies listed on the Indonesia Stock Exchange during the period of 2009-2013. The theoretical framework applied to analyze this research model is the theory of agency that is based on the existence of agency correlation, as the result of the separation of ownership and management performed by the manager. Tested ownership structure covers to largest shareholders, institutional shareholders and individual shareholders. Hypothesis testing is conducted by using a multiple regression models with a sample of 149 observations of non-financial companies listed on the Indonesia Stock Exchange during the period of 2009-2013 that have a constant profit during that period. The study provides empirical evidence consisting of: (1) largest shareholders are positively correlated and significant on dividend policy, (2) institutional shareholders are positively correlated and significant on dividend policy, (3) individual shareholders are negatively correlated and significant on dividend policy, (4) ratios, such as return of assets, firm size, and firm age, have significant effect on dividend policy.


dividend policy, individual shareholder, institutional shareholder, ownership structure.

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DOI: https://doi.org/10.29313/mimbar.v33i1.1965


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