Do Independent Commissioners Control the Effect of Family-Owned Business Characteristics on Dividend Policy? A Study in Indonesian Manufacturing Companies

Ernie HENDRAWATY; Sri  HASNAWATI; Lia  PURNAMASARI

doi:10.38142/ijesss.v2i2.71

Authors

Ernie HENDRAWATY Faculty of Economics and Business University of Lampung, Indonesia
Sri HASNAWATI Faculty of Economics and Business University of Lampung, Indonesia
Lia PURNAMASARI Faculty of Economics and Business University of Lampung, Indonesia

DOI:

https://doi.org/10.38142/ijesss.v2i2.71

Keywords:

Independent Commissioners, Family-owned Business Characteristics, Dividend Policy

Abstract

This study aims to determine the role of independent Commissioners to control the effect of family-owned business characteristics on dividend policy. This study construct panel data that estimate using panel regression with a fixed-effect model. The model is estimated using financial data of 64 Indonesian manufacturing companies that were observed from the period 2016-2018. The result showed that family-owned business characteristics have a positive effect on dividens. The Independent Commisioners were able to control the effect of family business characteristics on the dividend policy. The Independent Commissioners have a role in reducing the positive effect of family-owned businesses characteristics on dividends.

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