Determinants of Dividend Policy in IDX Consumer Manufacturing Companies

Abstract

Research aim

This study aims to examine the influence of corporate governance mechanisms on dividend policy with leverage, firm size, liquidity, and profitability as control variables in consumer manufacturing companies listed on the Indonesia Stock Exchange during 2019–2024.

Design/methodology/approach

This study uses a quantitative approach with panel data regression analysis. The sample consists of 33 companies selected through purposive sampling. Model selection was conducted using the Chow test, Hausman test, and Lagrange Multiplier test.

Findings

The results show that corporate governance mechanisms do not significantly influence dividend policy. Meanwhile, leverage, firm size, and liquidity significantly influence dividend policy, while profitability does not. These findings indicate that dividend policy decisions are more strongly influenced by financial conditions than by governance mechanisms.

Research limitations/implications

This study is limited to consumer manufacturing companies listed on the Indonesia Stock Exchange during 2019–2024. Future research is expected to include broader sectors and additional variables.

Practical implications

The findings suggest that managers should prioritize liquidity management, financial stability, and capital structure in determining dividend policy. Investors may also consider financial indicators in evaluating dividend prospects.

Originality/value

This study provides updated evidence regarding dividend policy in the post-pandemic period by integrating governance mechanisms and financial factors within an emerging market context.