FIRM’S DIVIDEND DECISION IN INDONESIA:CATER OR MATURE ?

Year 2016, Volume: 3 Issue: 3, 53 - 66, 29.07.2016

Novi S. Budiarso Winston Pontoh

https://doi.org/10.15637/jlecon.139

Abstract

 The aim of this study is to find the motivation behind firm’s dividend decision in perspective of
catering or life cycle theories. Conducting logistic regression for hypothesis testing, the study takes
222 Indonesia listed firms in period 2009 till 2014 as samples. The results of this study show that firms
as dividend payers who in mature phase are firms with age below 33 years, have lower debt, larger
size, and better profitable, while firms as dividend payers who setting their dividend decision based on
catering theory are firms with age above 33 years, have lower debt, larger size and better profitable.
The other interesting finding by the study is firms as dividend payers who in mature phase and also set
their dividend decision based on catering theory are firms with age above 33 years, have lower debt,
smaller size, and better profitable

Keywords

Catering, Maturity, Dividend, Share Price, Profit, Debt, Size, Liquidity

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