An Empirical Study of Tax and Inflation Effects Towards Dividend Policy in Indonesian Listed Companies

An Empirical Study of Tax and Inflation Effects Towards Dividend Policy in Indonesian Listed Companies

Firm’s dividend policy is one of the main considerations in investment decision-making. Past empirical evidences use proxies of dividend irrelevance theory, agency cost theory, dividend signaling theory, pecking order theory, and free cash flow theory to investigate the determinant of dividend polic...

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Main Author: Hardiyanti, Nurul
Format: Thesis
Language:eng
eng
Published: 2011
Subjects:
HC Economic History and Conditions
Online Access:https://etd.uum.edu.my/2886/1/Nurul_Hardiyanti.pdf
https://etd.uum.edu.my/2886/2/1.Nurul_Hardiyanti.pdf
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id my-uum-etd.2886
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Rozali, Mohammad Badri
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Hardiyanti, Nurul
An Empirical Study of Tax and Inflation Effects Towards Dividend Policy in Indonesian Listed Companies
description Firm’s dividend policy is one of the main considerations in investment decision-making. Past empirical evidences use proxies of dividend irrelevance theory, agency cost theory, dividend signaling theory, pecking order theory, and free cash flow theory to investigate the determinant of dividend policy. This study extends the prior researches by investigating the effects of tax and inflation towards the dividend policy of listed firms in the Indonesian Stock Exchange from 2000 to 2009. This study applies the Ordinary Least Squares (OLS) method to measure the effects. The findings reveal that both tax and inflation do not significantly affect the dividend policy of all sample Indonesian firms. However, the result comes up differently when those firms are classified into their respective industry sectors. This study documents the evidence that four industry sectors are positively affected by tax, namely Agriculture industry, Consumer Goods industry, Miscellaneous industry, and Property, Real Estate and Building Construction industry. The Mining industry, on the other hand, is negatively affected by tax. Meanwhile, only two industry sectors that are found to be positively affected by inflation, which are Agriculture industry and Basic Industry and Chemical industry.
format Thesis
qualification_name masters
qualification_level Master's degree
author Hardiyanti, Nurul
author_facet Hardiyanti, Nurul
author_sort Hardiyanti, Nurul
title An Empirical Study of Tax and Inflation Effects Towards Dividend Policy in Indonesian Listed Companies
title_short An Empirical Study of Tax and Inflation Effects Towards Dividend Policy in Indonesian Listed Companies
title_full An Empirical Study of Tax and Inflation Effects Towards Dividend Policy in Indonesian Listed Companies
title_fullStr An Empirical Study of Tax and Inflation Effects Towards Dividend Policy in Indonesian Listed Companies
title_full_unstemmed An Empirical Study of Tax and Inflation Effects Towards Dividend Policy in Indonesian Listed Companies
title_sort empirical study of tax and inflation effects towards dividend policy in indonesian listed companies
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2011
url https://etd.uum.edu.my/2886/1/Nurul_Hardiyanti.pdf
https://etd.uum.edu.my/2886/2/1.Nurul_Hardiyanti.pdf
_version_ 1747827453005398016
spelling my-uum-etd.28862016-04-18T07:46:53Z An Empirical Study of Tax and Inflation Effects Towards Dividend Policy in Indonesian Listed Companies 2011 Hardiyanti, Nurul Rozali, Mohammad Badri Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HC Economic History and Conditions Firm’s dividend policy is one of the main considerations in investment decision-making. Past empirical evidences use proxies of dividend irrelevance theory, agency cost theory, dividend signaling theory, pecking order theory, and free cash flow theory to investigate the determinant of dividend policy. This study extends the prior researches by investigating the effects of tax and inflation towards the dividend policy of listed firms in the Indonesian Stock Exchange from 2000 to 2009. This study applies the Ordinary Least Squares (OLS) method to measure the effects. The findings reveal that both tax and inflation do not significantly affect the dividend policy of all sample Indonesian firms. However, the result comes up differently when those firms are classified into their respective industry sectors. This study documents the evidence that four industry sectors are positively affected by tax, namely Agriculture industry, Consumer Goods industry, Miscellaneous industry, and Property, Real Estate and Building Construction industry. The Mining industry, on the other hand, is negatively affected by tax. Meanwhile, only two industry sectors that are found to be positively affected by inflation, which are Agriculture industry and Basic Industry and Chemical industry. 2011 Thesis https://etd.uum.edu.my/2886/ https://etd.uum.edu.my/2886/1/Nurul_Hardiyanti.pdf application/pdf eng validuser https://etd.uum.edu.my/2886/2/1.Nurul_Hardiyanti.pdf application/pdf eng public masters masters Universiti Utara Malaysia Afza, T. (2010). 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