Dividend and Agency Conflict in Indonesian Manufacturing Firms

Amrullah, Andi Anugerah and Wijaya, Hendra (2018) Dividend and Agency Conflict in Indonesian Manufacturing Firms. Dividend and Agency Conflict in Indonesian Manufacturing Firms, 22 (3). pp. 395-404. ISSN e-ISSN: 2443-2687 p-ISSN: 1410-8089, Jurnal Nasioanal Terakreditasi Peringkat 2

[thumbnail of Dividend and Agency Conflict in Indonesian Manufacturing Firms]
Preview
Text (Dividend and Agency Conflict in Indonesian Manufacturing Firms)
1-Dividend_and_agency_.pdf

Download (493kB) | Preview
[thumbnail of Dividend and Agency Conflict in Indonesian Manufacturing Firms_peer_review]
Preview
Text (Dividend and Agency Conflict in Indonesian Manufacturing Firms_peer_review)
1-R1&2-Dividend_and_agency_.pdf

Download (1MB) | Preview
[thumbnail of Dividend and Agency Conflict in Indonesian Manufacturing Firms]
Preview
Text (Dividend and Agency Conflict in Indonesian Manufacturing Firms)
1-Dividend_and_agency__Hasil Cek Similarity.pdf

Download (2MB) | Preview
[thumbnail of Dividend and Agency Conflict in Indonesian Manufacturing Firms] Text (Dividend and Agency Conflict in Indonesian Manufacturing Firms)
4-Agency _cost_financial_performance_hasil cek similarity.pdf

Download (2MB)
[thumbnail of Agency Cost, Financial Performance, And Women in Board of Commissioners] Text (Agency Cost, Financial Performance, And Women in Board of Commissioners)
8-Agency _cost_financial_performance_hasil cek similarity.pdf

Download (2MB)
[thumbnail of Agency Cost, Financial Performance, And Women in Board of Commissioners] Text (Agency Cost, Financial Performance, And Women in Board of Commissioners)
8-Agency _cost_financial_performance_.pdf

Download (187kB)
[thumbnail of Agency Cost, Financial Performance, And Women in Board of Commissioners] Text (Agency Cost, Financial Performance, And Women in Board of Commissioners)
8-Agency_cost_financial_performance_Koresponden.pdf

Download (347kB)

Abstract

Firm’s investment and financing decision had been empirically proven to have a certain influence on firm value, as changes in investment and financing policies will result in alterations of the firm risk profile. In the case of Indonesia, where the degree of investor protection was poor, and minority shareholders were at risk of expropriation of majority shareholders, increase in investment and debt addition was ill-favored and hence, result in a lower firm value. To mitigate the risk of expropriation, firms might chose to apply cash rights to its shareholders by distributing dividends. Using panel data with moderation on 86 Indonesian manufacturing firms, we found that dividend policy positively moderates the effect of the investment decision in firm value and negatively moderates the effect of financing decision on the value of the firm. Our finding act as empirical evidence that dividend policy was an effective tool to mitigate expropriation risk, albeit its used also sent a negative signal to the shareholder when a firm increases loans to paid out dividends.

Item Type: Article
Additional Information: Jurnal Nasioanal Terakreditasi Peringkat 2
Uncontrolled Keywords: Dividend Policy; Financing Decision; Firm Value; Investment Decision
Subjects: Business > Management
Divisions: Journal Publication
Depositing User: F.X. Hadi
Date Deposited: 02 Dec 2020 04:16
Last Modified: 11 Jan 2024 08:48
URI: http://repository.ukwms.ac.id/id/eprint/23796

Actions (login required)

View Item View Item