Dividend policy in Indonesian banking sector during COVID-19 pandemic period
AbstractThis research examines the effect of the crisis caused by the COVID-19 pandemic on the dividend policy in banking companies in Indonesia with the focus on the 2014 to 2020 period. The samples were selected using the purposive sampling method, and the data were analyzed statistically using dy...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Social Sciences |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311886.2023.2272657 |
| _version_ | 1797393726272700416 |
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| author | Puguh Budi Santosa Irene Rini Demi Pangestuti Sugeng Wahyudi Harjum Muharam |
| author_facet | Puguh Budi Santosa Irene Rini Demi Pangestuti Sugeng Wahyudi Harjum Muharam |
| author_sort | Puguh Budi Santosa |
| collection | DOAJ |
| description | AbstractThis research examines the effect of the crisis caused by the COVID-19 pandemic on the dividend policy in banking companies in Indonesia with the focus on the 2014 to 2020 period. The samples were selected using the purposive sampling method, and the data were analyzed statistically using dynamic panel data regression with two estimation techniques which include the first difference generalized method of moments (FD-GMM) and the system generalized method of moments (SYS-GMM). Moreover, the predictor of the crisis caused by the COVID-19 pandemic was proxied by GDP growth and annual inflation rate, and this led to the estimation of four parameters to obtain comprehensive results. The model specification test also found only three-parameter estimates considered feasible for use in the research and the results showed that banks tend to distribute higher dividends during the period of the crisis caused by the pandemic. It was also discovered that profitability and dividends from the previous year have a significant positive effect on dividend policy. Furthermore, banking liquidity was found to also have a positive effect, while financial leverage, investment opportunity, and bank size have a negative effect on dividend policy. These findings are expected to serve as a reference for investors in making business decisions to achieve optimal returns and to allow company management, especially those in the banking sector, to formulate optimal dividend policies during a crisis. |
| first_indexed | 2024-03-09T00:08:05Z |
| format | Article |
| id | doaj.art-4eec2749160b45bd995fa20e8537a0ba |
| institution | Directory Open Access Journal |
| issn | 2331-1886 |
| language | English |
| last_indexed | 2024-03-09T00:08:05Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Social Sciences |
| spelling | doaj.art-4eec2749160b45bd995fa20e8537a0ba2023-12-12T12:45:37ZengTaylor & Francis GroupCogent Social Sciences2331-18862023-12-019210.1080/23311886.2023.2272657Dividend policy in Indonesian banking sector during COVID-19 pandemic periodPuguh Budi Santosa0Irene Rini Demi Pangestuti1Sugeng Wahyudi2Harjum Muharam3Doctoral Program in Economics, Faculty of Economics and Business, Universitas Diponegoro, Semarang, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Diponegoro, Semarang, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Diponegoro, Semarang, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Diponegoro, Semarang, IndonesiaAbstractThis research examines the effect of the crisis caused by the COVID-19 pandemic on the dividend policy in banking companies in Indonesia with the focus on the 2014 to 2020 period. The samples were selected using the purposive sampling method, and the data were analyzed statistically using dynamic panel data regression with two estimation techniques which include the first difference generalized method of moments (FD-GMM) and the system generalized method of moments (SYS-GMM). Moreover, the predictor of the crisis caused by the COVID-19 pandemic was proxied by GDP growth and annual inflation rate, and this led to the estimation of four parameters to obtain comprehensive results. The model specification test also found only three-parameter estimates considered feasible for use in the research and the results showed that banks tend to distribute higher dividends during the period of the crisis caused by the pandemic. It was also discovered that profitability and dividends from the previous year have a significant positive effect on dividend policy. Furthermore, banking liquidity was found to also have a positive effect, while financial leverage, investment opportunity, and bank size have a negative effect on dividend policy. These findings are expected to serve as a reference for investors in making business decisions to achieve optimal returns and to allow company management, especially those in the banking sector, to formulate optimal dividend policies during a crisis.https://www.tandfonline.com/doi/10.1080/23311886.2023.2272657dividend policyIndonesian banking sectorCOVID-19 pandemicIndonesia stock exchangedynamic panel data regressionG21 |
| spellingShingle | Puguh Budi Santosa Irene Rini Demi Pangestuti Sugeng Wahyudi Harjum Muharam Dividend policy in Indonesian banking sector during COVID-19 pandemic period Cogent Social Sciences dividend policy Indonesian banking sector COVID-19 pandemic Indonesia stock exchange dynamic panel data regression G21 |
| title | Dividend policy in Indonesian banking sector during COVID-19 pandemic period |
| title_full | Dividend policy in Indonesian banking sector during COVID-19 pandemic period |
| title_fullStr | Dividend policy in Indonesian banking sector during COVID-19 pandemic period |
| title_full_unstemmed | Dividend policy in Indonesian banking sector during COVID-19 pandemic period |
| title_short | Dividend policy in Indonesian banking sector during COVID-19 pandemic period |
| title_sort | dividend policy in indonesian banking sector during covid 19 pandemic period |
| topic | dividend policy Indonesian banking sector COVID-19 pandemic Indonesia stock exchange dynamic panel data regression G21 |
| url | https://www.tandfonline.com/doi/10.1080/23311886.2023.2272657 |
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