Can Ownership Structure, Capital Structure, and Company Value Determine a Company's Dividend Policy?

Abstract

Backgrounds: Inconsistency or inaccuracy in dividend payments can undermine investor confidence in managers. Companies that implement a dividend policy are those with adequate financial performance, performance prospects, and capital structure. Objectives: This study was conducted to determine the effect of  managerial ownership, institutional ownership, capital structure  and firm value on dividend policy as well as the moderating effect  of firm value on the relationship between managerial ownership,  institutional ownership and capital structure with dividend policy.  Method: Based on quantitative research methods with purposive sampling  techniques, 10 companies in the manufacturing sector of the  consumer goods industry sub-sector were obtained on the IDX in  the 2018-2022 period. Results: The results showed that there is an influence between institutional ownership, capital structure and firm value on dividend policy, while managerial ownership has not been able to influence dividend policy, and firm value can moderate the relationship between institutional ownership and capital structure on dividend policy Conclusion: Companies should maintain their management performance to attract investors and consistently distribute dividends to their shareholders. Furthermore, companies must also determine an appropriate dividend policy, as it will impact the well-being of the company and its shareholders. Furthermore, investors should consider the percentage of institutional share ownership before investing, as this study demonstrates that higher institutional ownership leads to higher dividends. Finally, academics should conduct similar research with different subjects to support previous research.