KONSEKUENSI TAK TERDUGA DARI GOOD CORPORATE GOVERNANCE: PENGUJIAN TEORI OUTCOME Vs TEORI SUBSTITUSI DAN PENGUJIAN VARIABEL INTERVENING ATAS KEBIJAKAN DIVIDEN PADA INDUSTRI PERBANKAN INDONESIA

Abstract

The purpose of this study is to investigate the effect of corporate governance on dividend policy, by examining weather outcomes theory or substitute theory was applied on that relationship in Indonesian banking industry for four periods, started from 2009 to 2012 with purposive sampling as sampling methode. Furthermore, we like to have deep insight weather dividend policy has a role as intervening variable on the relationship between CG and firm value. We examine four hyphotesis by using multiple regressions for unswering first hyphotesis to third, while path analysis is used for investigate the intervening role of divedend policy. The result confirmed that substitution theory is applied to explain the relationship between CG and dividend policy in Indonesian banking industry. Furthurmore, dividend policy has an intervening role on the relationship between CG and firm value. Since substitution theory is confirmed, we could say that while firm has good CG, there is possibility that company will pay low dividend to their investor. This could be came as unintended consequence that might be happened for having good CG. Our study also have important role for two types of investor, short-term and long-term investor. Because unintended consequenses might happened from having good CG, sort term-investors are suggest to be aware of firm that has good CG since they will not obtaind big dividend from the firm in short periode, while long-term investors are suggested to choose firms with good CG because in long term the firms will expand and grow and finally can increase the firm value.