Dividend Policy and Capital Structure Decision in Family and Non-Family Firms: Evidence From Indonesia
Majority firms in Indonesia are family controlled firms. Family control firms have particular agency problem that may affect the company’s performance. As argued, leverage and dividend in the company could be such a tool to counter agency problem. The purpose of this study was to examine the effect...
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| Format: | Article |
| Language: | English |
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cita konsultindo
2022-07-01
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| Series: | Asian Journal of Management, Entrepreneurship and Social Science |
| Subjects: | |
| Online Access: | http://www.ajmesc.com/index.php/ajmesc/article/view/124 |
| _version_ | 1797974046244077568 |
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| author | Nadia Azalia Putri Ana Pratiwi |
| author_facet | Nadia Azalia Putri Ana Pratiwi |
| author_sort | Nadia Azalia Putri |
| collection | DOAJ |
| description |
Majority firms in Indonesia are family controlled firms. Family control firms have particular agency problem that may affect the company’s performance. As argued, leverage and dividend in the company could be such a tool to counter agency problem. The purpose of this study was to examine the effect of family control on the firms’ capital structure and dividend policy and whether there is difference in capital structure and dividend policy between family and nonfamily firms in Indonesia. This study used a total of 32 listed companies, consisted of 17 family firms and 15 nonfamily firms from period 2018-2021. Multiple linear regression and independent t-test were used to test the hypotheses. Our analysis reveals that family control affect both capital structure and dividend policy. We also found that there is obvious difference in capital structure and dividend policy between family and nonfamily firms. Family firms tend to be indebted than their nonfamily counterparts yet family firms pay less dividend than nonfamily firms
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| first_indexed | 2024-04-11T04:13:50Z |
| format | Article |
| id | doaj.art-2fb9b66c26bf4fa9a43bf03e057cf370 |
| institution | Directory Open Access Journal |
| issn | 2808-7399 |
| language | English |
| last_indexed | 2024-04-11T04:13:50Z |
| publishDate | 2022-07-01 |
| publisher | cita konsultindo |
| record_format | Article |
| series | Asian Journal of Management, Entrepreneurship and Social Science |
| spelling | doaj.art-2fb9b66c26bf4fa9a43bf03e057cf3702022-12-31T23:16:24Zengcita konsultindoAsian Journal of Management, Entrepreneurship and Social Science2808-73992022-07-01203Dividend Policy and Capital Structure Decision in Family and Non-Family Firms: Evidence From Indonesia Nadia Azalia Putri0Ana Pratiwi1UIN KHAS Jember, INDONESIAUIN KHAS Jember, INDONESIA Majority firms in Indonesia are family controlled firms. Family control firms have particular agency problem that may affect the company’s performance. As argued, leverage and dividend in the company could be such a tool to counter agency problem. The purpose of this study was to examine the effect of family control on the firms’ capital structure and dividend policy and whether there is difference in capital structure and dividend policy between family and nonfamily firms in Indonesia. This study used a total of 32 listed companies, consisted of 17 family firms and 15 nonfamily firms from period 2018-2021. Multiple linear regression and independent t-test were used to test the hypotheses. Our analysis reveals that family control affect both capital structure and dividend policy. We also found that there is obvious difference in capital structure and dividend policy between family and nonfamily firms. Family firms tend to be indebted than their nonfamily counterparts yet family firms pay less dividend than nonfamily firms http://www.ajmesc.com/index.php/ajmesc/article/view/124Capital Structure, Dividend Policy, Family Control, Family Firms |
| spellingShingle | Nadia Azalia Putri Ana Pratiwi Dividend Policy and Capital Structure Decision in Family and Non-Family Firms: Evidence From Indonesia Asian Journal of Management, Entrepreneurship and Social Science Capital Structure, Dividend Policy, Family Control, Family Firms |
| title | Dividend Policy and Capital Structure Decision in Family and Non-Family Firms: Evidence From Indonesia |
| title_full | Dividend Policy and Capital Structure Decision in Family and Non-Family Firms: Evidence From Indonesia |
| title_fullStr | Dividend Policy and Capital Structure Decision in Family and Non-Family Firms: Evidence From Indonesia |
| title_full_unstemmed | Dividend Policy and Capital Structure Decision in Family and Non-Family Firms: Evidence From Indonesia |
| title_short | Dividend Policy and Capital Structure Decision in Family and Non-Family Firms: Evidence From Indonesia |
| title_sort | dividend policy and capital structure decision in family and non family firms evidence from indonesia |
| topic | Capital Structure, Dividend Policy, Family Control, Family Firms |
| url | http://www.ajmesc.com/index.php/ajmesc/article/view/124 |
| work_keys_str_mv | AT nadiaazaliaputri dividendpolicyandcapitalstructuredecisioninfamilyandnonfamilyfirmsevidencefromindonesia AT anapratiwi dividendpolicyandcapitalstructuredecisioninfamilyandnonfamilyfirmsevidencefromindonesia |