Dividend Policy: Effect of Insider Ownership, Company Growth, and Profitability

Abstract

This study aims to determine the effect of Insider Ownership, Company Growth, and Profitability on Dividend Policy in manufacturing companies listed on the Indonesia Stock Exchange for the period 2017 -2019. The independent variables in this study are Insider Ownership, Company Growth, and Profitability, while the dependent variable is Dividend Policy. The research method uses an explanatory annual research type. The research population is manufacturing companies listed on the Indonesia Stock Exchange for the period 2017-2019. The sample in this study was 32 companies obtained using the purposive sampling technique based on predetermined criteria. The analysis technique used is multiple linear regression analysis. Conclusions on the hypothesis are made by observing the value of the coefficient of determination and regression, taking into account the results of the significance test, namely the t-test and F-test at a significance level of 5 percent, performing classical assumption tests such as normality test, multicollinearity test, autocorrelation test, and heteroscedasticity test. The results show that Insider Ownership and Company Growth have a negative effect on Dividend Policy, while Profitability has a positive effect on Dividend Policy. Then Insider Ownership, Company Growth, and Profitability simultaneously affect Dividend Policy.