THE ROLE OF OWNERSHIP ON BEHAVIOR OF DIVIDEND PAYERS

Year 2016, , 59 - 68, 31.10.2016

David Paul Elia Saerang Winston Pontoh

https://doi.org/10.15637/jlecon.156

Abstract

The objectives of this study are to give empirical evidences about cash cow firms and free
cash flow theory. Conducting compare means paired samples t test and logistic regression with
samples of 141 firms which listed in Indonesia Stock Exchange for period 2009 to 2014, this study
proves dividend payers in Indonesia are not cash cows and ownership has role in determining
behavior behind dividend policy. Firms with individuals and/or public ownership both for larger and
smaller size shall pay dividends for some other intentions, but firms with institutional and/or state
ownership concerns with its size shall pay dividends because : first, they are not at cash cows status or
not under circumstance of internal conflict; second, they shall behave like cash cows in order of
conflict avoidance 

Keywords

Dividend Payers, Cash Cows, Free Cash Flow Theory, Ownership, Size

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