CORPORATE GOVERNANCE AND DIVIDEND STRATEGIES: THE CASE OF NON FINANCIAL FIRMS IN INDONESIA

The purpose of this research is to empirically investigate the impact of corporate governance on dividend payout (DP) in Indonesia in the period 2012-2016. The samples of this research are all firms listed in Indonesia Stock Exchange during 2012-2016 exclude the financial firms and firms that do not match the criteria of the samples. This research use corporate governance perception index from The Indonesia Insititute for Corporate Governance (IICG) to measure the corporate governance and dividend payout ratio to measure the DP and controlled by firm size, growth opportunity, financial distress, and dividend-track. The method that used in this research is OLS regression. The findings of this research are corporate governance does not impact dividend payout of a firm, growth opportunity and CCGPI do not impact dividend payout of firms either. Firm size and dividend-track significantly impact dividend payout of a firm. The conclusions of this research are firm GCG has no conflict between manager and shareholder which means firm has no agency cost so that the firm does not have to pay dividend to shareholders to reduce agency cost.