Do Ownership of Companies Effect to Financing and Dividend Policy? Evidence from Indonesia Listed Non-Financial Industry Companies

Abstract

This study aims to determine the effect of ownership structure on financing and dividend policy. The ownership includes institutional ownership, managerial ownership, and concentration of ownership. Based on sample of 1.098 firm-years non-financial companies, the regression analysis shows that the higher the control by institutional owners, the lower company dividend rate are. However, managerial ownership does not affect the dividend and financing decision. On the other hand, concentrated ownership in a company increases company dividend rate and debt-financing. The results are robust whether the type of ownership and concentration ownership are test separately or simultaneously.