Ownership Structure and Dividend Policy in LQ45 Companies on the Indonesia Stock Exchange (IDX)

Sri Hasnawati; Nindytia Puspitasari Dalimunthe; Ahmad Faisol

doi:10.47768/gema.v17i1.202501

Sri Hasnawati Program Studi Magister Manajemen, Fakultas Ekonomi dan Bisnis, Universitas Lampung, Indonesia
Nindytia Puspitasari Dalimunthe Fakultas Ekonomi dan Bisnis Universitas Lampung
Ahmad Faisol Master of Management Study Program, Faculty of Economics and Business, University of Lampung, Lampung

DOI: https://doi.org/10.47768/gema.v17i1.202501

Keywords: Managerial Ownership, Public Ownership, Institutional Ownership, Dividend Policy

Abstract

This study examines the relationship between ownership structure and dividend policy within the context of the LQ45 Index for the year 2021. Focusing on 33 constituent firms, the research analyzes the effects of public, institutional, and managerial ownership on corporate dividend decisions. Employing an Ordinary Least Squares (OLS) regression model, the analysis demonstrates a positive correlation between public ownership and dividend payouts, while revealing a negative association between institutional ownership and dividend policy. Conversely, the study finds no statistically significant impact of managerial ownership on dividend policy. This non-significance is potentially explained by the comparatively low average level of managerial ownership and a focus on reinvesting free cash flow. Additionally, the findings suggest a potential alignment between institutional and managerial ownership in favoring lower dividend distributions.

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