Ownership Structure on Dividend Policy and Its Impact on Firm Value

Abstract

The purpose of this study is to examine the effect of share ownership structure on dividend policy and its impact on firm value. Ownership structure is proxied by managerial ownership, institutional ownership, and ownership concentration. The research data were obtained from manufacturing companies listed on the Indonesia Stock Exchange (BEI) 2016-2018 using purposive sampling method of selecting samples. The results of hypothesis testing using multiple regressions indicate that institutional ownership and ownership concentration have a positive effect on dividend policy,while managerial ownership has no effect. The results also show that dividend policy has a positive effect on firm value. As predicted, profitability and leverage as control variables have an effect on dividend policy and firm value.