The Influence of Family Ownership on Dividend Policy Moderated by Corporate Governance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2019

This study examines the influence of family ownership on dividend policy, moderated by corporate governance practices. Family ownership, a dominant structure in Indonesian companies, prioritizes family welfare and often leads to agency conflicts, particularly Type II agency conflicts between majorit...

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Main Authors: Fitrilia Farida S, Umi Muawanah, Kohar Adi Setia
Format: Article
Language:English
Published: Politeknik Negeri Madiun 2025-05-01
Series:Jurnal AKSI (Akuntansi dan Sistem Informasi)
Subjects:
Online Access:https://journal.pnm.ac.id/index.php/aksi/article/view/842
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author Fitrilia Farida S
Umi Muawanah
Kohar Adi Setia
author_facet Fitrilia Farida S
Umi Muawanah
Kohar Adi Setia
author_sort Fitrilia Farida S
collection DOAJ
description This study examines the influence of family ownership on dividend policy, moderated by corporate governance practices. Family ownership, a dominant structure in Indonesian companies, prioritizes family welfare and often leads to agency conflicts, particularly Type II agency conflicts between majority family shareholders and minority shareholders. Using a sample of manufacturing companies listed on the Indonesia Stock Exchange, this research analyzes the relationship between family ownership and the dividend payout ratio while incorporating corporate governance mechanisms as a moderating variable. Corporate governance is proxied by board independence, institutional ownership, and board size to enhance transparency and reduce conflicts of interest.The findings reveal that family ownership has a positive but insignificant effect on dividend policy. However, corporate governance mechanisms significantly enhance dividend policy by balancing the interests of majority and minority shareholders, reducing moral hazard, and improving monitoring processes. This study contributes to understanding how governance structures mediate the relationship between ownership concentration and financial policy, providing valuable insights for stakeholders in developing effective governance frameworks.
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publishDate 2025-05-01
publisher Politeknik Negeri Madiun
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series Jurnal AKSI (Akuntansi dan Sistem Informasi)
spelling doaj-art-c6d366b6bf004909aa04acaa411b71692025-08-20T02:02:26ZengPoliteknik Negeri MadiunJurnal AKSI (Akuntansi dan Sistem Informasi)2528-61452541-31982025-05-0110117919010.32486/aksi.v10i1.842844The Influence of Family Ownership on Dividend Policy Moderated by Corporate Governance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2019Fitrilia Farida S0Umi Muawanah1Kohar Adi Setia2Universitas Gajayana MalangUniversitas Gajayana MalangUniversitas Gajayana MalangThis study examines the influence of family ownership on dividend policy, moderated by corporate governance practices. Family ownership, a dominant structure in Indonesian companies, prioritizes family welfare and often leads to agency conflicts, particularly Type II agency conflicts between majority family shareholders and minority shareholders. Using a sample of manufacturing companies listed on the Indonesia Stock Exchange, this research analyzes the relationship between family ownership and the dividend payout ratio while incorporating corporate governance mechanisms as a moderating variable. Corporate governance is proxied by board independence, institutional ownership, and board size to enhance transparency and reduce conflicts of interest.The findings reveal that family ownership has a positive but insignificant effect on dividend policy. However, corporate governance mechanisms significantly enhance dividend policy by balancing the interests of majority and minority shareholders, reducing moral hazard, and improving monitoring processes. This study contributes to understanding how governance structures mediate the relationship between ownership concentration and financial policy, providing valuable insights for stakeholders in developing effective governance frameworks.https://journal.pnm.ac.id/index.php/aksi/article/view/842agency conflictboard of independenceboard sizeinstitutional ownership
spellingShingle Fitrilia Farida S
Umi Muawanah
Kohar Adi Setia
The Influence of Family Ownership on Dividend Policy Moderated by Corporate Governance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2019
Jurnal AKSI (Akuntansi dan Sistem Informasi)
agency conflict
board of independence
board size
institutional ownership
title The Influence of Family Ownership on Dividend Policy Moderated by Corporate Governance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2019
title_full The Influence of Family Ownership on Dividend Policy Moderated by Corporate Governance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2019
title_fullStr The Influence of Family Ownership on Dividend Policy Moderated by Corporate Governance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2019
title_full_unstemmed The Influence of Family Ownership on Dividend Policy Moderated by Corporate Governance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2019
title_short The Influence of Family Ownership on Dividend Policy Moderated by Corporate Governance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2019
title_sort influence of family ownership on dividend policy moderated by corporate governance in manufacturing companies listed on the indonesia stock exchange in 2019
topic agency conflict
board of independence
board size
institutional ownership
url https://journal.pnm.ac.id/index.php/aksi/article/view/842
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