Political connections, financing and dividend policy: Evidence from SOE (listed) in Indonesia a) Leonita Putri, SE, MBA- b) Dr. Sulaeman Rahman Nidar, SE, MBA- c) Dr. Rachmat Sudarsono-d) Dr. Josep Ginting, CFA
a) Ph.D Student of Economics and Business Faculty, Padjadjaran University, Bandung, Indonesia- Lecturer at Sriwijaya University, Palembang, Indonesia
b) & c) Lecturer at FEB, Padjadjaran University, Bandung, Indonesia-
c) Lecturer at President University, Cikarang, Indonesia,
Abstract
The purpose of this study is to see the political connections DER, EPS, SIZE, growth and ROA influence on the company^s dividend distribution policy. This study uses five variables, namely the dividend policy variable as the dependent variable proxied by the dividend payout ratio (DPR), the independent variable is the political connection measured by using a dummy, capital structure by using DER, EPS, SIZE, growth and ROA. The sample in the study SOE listed on the Indonesia Stock Exchange in 2010-2018 period. The sample was selected using purposive sampling technique and obtained 12 companies. This study uses a quantitative approach with analysis tools using multiple linear regression with the help of EViews 9.0 software. The results of this study indicate that political connections, Capital structure, Growth have a negative effect on dividend policy and size, EPS, ROA have a positive effect on dividend policy.
Keywords: Political Connections, Size, Growth, Capital Structure, Profitability, Dividend Policy
