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Dividend policy of Indonesian listed firms: the role of families and the state

Duygun, Meryem; Guney, Yilmaz; Moin, Abdul


Aviva Chair in Risk and Insurance

Yilmaz Guney

Abdul Moin


We investigate factors influencing the dividend policy of the listed Indonesian firms by focusing on agency costs and ownership structure. Our study finds that firms with higher conflicts of interest among managers and shareholders pay lower dividends. In the context of the conflicts of interest among major and minor shareholders, we find that such conflicts would exert little impact on dividend payments. Further, we find that the family-controlled firms prefer to pay less dividends whereas the corporations with higher state ownership are associated with larger dividend payments. Our findings are in line with the argument that the Indonesian state consider corporate dividends as one of the main sources of revenues other than corporate taxes in their government budget. This issue may have adverse effects on the growth of cash-constrained small and medium-sized enterprises.


Duygun, M., Guney, Y., & Moin, A. (2018). Dividend policy of Indonesian listed firms: the role of families and the state. Economic Modelling, 75, 336-354.

Journal Article Type Article
Acceptance Date Jul 7, 2018
Online Publication Date Jul 19, 2018
Publication Date Nov 1, 2018
Deposit Date Nov 13, 2018
Publicly Available Date Jul 20, 2019
Journal Economic Modelling
Print ISSN 0264-9993
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 75
Pages 336-354
Keywords Dividends; Ownership structure; Agency conflicts; Indonesia
Public URL
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Additional Information This article is maintained by: Elsevier; Article Title: Dividend policy of Indonesian listed firms: The role of families and the state; Journal Title: Economic Modelling; CrossRef DOI link to publisher maintained version:; Content Type: article; Copyright: © 2018 Elsevier B.V. All rights reserved.


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