The Effects of Capital Structure, Business Risk, and Return on Equity Against Dividend Policy with Firm Size as a Moderating Variable

Abstract

This study examines the factors influencing dividend policy in state-owned enterprises (SOEs) and their subsidiaries. Through the list provided by the Indonesia Stock Exchange, a total of 48 samples were selected, of which 8 are state-owned enterprises for the 2015-2020 period. Eviews version 11.0 is used as the analytical tool to analyze the provided hypothesis. The results show that capital structure displays a significantly negative effect on dividend policy, however both business risk and return on equity show no effect on dividend policy. Firm size is able to moderate capital structure against dividend policy, however it is unable to moderate business risk and return on equity against dividend policy.