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Dividend Initiation Policy and the Effect on Dividend Sustainability (At Initial Public Offering Companies on the Indonesia Stock Exchange)

Author

Listed:
  • Akhmad Hitten

    (Department of Management, Faculty of Economics and Business, Universitas Tanjungpura, Pontianak.)

  • Mustaruddin Mustaruddin

    (Department of Management, Faculty of Economics and Business, Universitas Tanjungpura, Pontianak.)

  • M. Rustam

    (Department of Management, Faculty of Economics and Business, Universitas Tanjungpura, Pontianak.)

Abstract

This study aims to examine the effects of maturity and agency cost model variables on the behavior of dividend initiation policy, and the effect itself on dividend sustainable. Samples of 93 non-financial companies that have Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX), 2005 - 2017. This study uses Structural Equation Modeling with SmartPLS software to test the hypothesis. The test results show: maturity and capital structure variable have significant and positive effects on dividend initiation policy. Ownership structure does not affect the dividend initiation policy. Dividend initiation variable has a significant and positive effect on dividend sustainable.

Suggested Citation

  • Akhmad Hitten & Mustaruddin Mustaruddin & M. Rustam, 2019. "Dividend Initiation Policy and the Effect on Dividend Sustainability (At Initial Public Offering Companies on the Indonesia Stock Exchange)," International Journal of Economics and Financial Issues, Econjournals, vol. 9(5), pages 147-152.
    • Handle: RePEc:eco:journ1:2019-05-20
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Agency Cost Model; Dividend Initiation Policy; Dividend Sustainability.;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F30 - International Economics - - International Finance - - - General
    • F39 - International Economics - - International Finance - - - Other

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