|
Abstract:
The purpose of this paper is to discuss empirical research examining the impact of female representation in the board of directors and ownership concentration on dividend policy for firms listed in Indonesia Stock Exchange (IDX). Female representation is measured by dummy which is stated by 1 for the existing of representation and 0 otherwise. Ownership concentration is measured by Herfindahl Index, whereas dividend policy is measured by dividend payout ratio. The data used in this study are obtained from Indonesian Capital Market Directory, Indonesian Stock Exchange database, and company annual reports. Using a sample of 323 observations of publicly listed companies on the Indonesian Stock Exchange for the fiscal year that ends on December 31, 2014 through 2016, this study finds that, in general, female representation in the board of directors positively affects dividend policy. Moreover, ownership concentration is also positively affects dividend policy. ownership concentration is also positively affects dividend policy is only confirmed in five industry, which are consumer goods; infrastructure, utilities and transportation; miscellaneous industry; property, real estate and building construction; and trade, services & investment, whereas in other three industries are not supported. Moreover, female representation in the board of directors positively affects dividend policy is also supported in three industry, which are consumer goods; infrastructure, utilities and transportation; and property, real estate and building construction, but in the other five industry not supported. This study provides further evidence of the effect gender in board directors and ownership concentration on dividend policy using data from Indonesia.
|
