Impact of Covid-19 Pandemic on Dividend Policy: Case of Indonesia
| Main Authors: | Susilo, Jennifer Johanna; School of Business and Management, Institut Teknologi Bandung, Nainggolan, Yunieta Anny; School of Business and Management, Institut Teknologi Bandung |
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| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Proceedings of International Conference on Management in Emerging Markets (ICMEM) SBM ITB
, 2022
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| Online Access: |
https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4683 https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4683/1573 |
Daftar Isi:
- The COVID-19 pandemic has dramatically impacted many companies in Indonesia. During the hard economy times, companies experienced declines in revenue, but still need to maintain shareholder’s trust by paying dividends regularly. Corporate governance plays an important role in determining the dividend policy, in order to ensure there is no managers expropriation and protecting the investors rights. For this research, the aim is to analyze the impact of corporate governance to dividend policy during pandemic and in general, as the firm behavior is quite interesting to be researched whether company with good corporate governance still maintain the regular dividend payment although they need immediate source of funds. The hypothesis for this research is firm with high corporate governance practices will continue to pay high dividends to the shareholders although the company cashflows maybe in trouble. With time series being concerned of FY 2016-2020, the writer used panel regression method with generalized least squares (GLS). The overall evidence showed that companies having better corporate governance score tend to pay higher dividends. Other determinants that impact dividend policy is profitability, leverage, growth and firm size have the expected impacts on dividend policy. Keywords: dividend policy, corporate governance, COVID-19, pandemic