THE EFFECT OF INDEPENDENT DIRECTORS ON DIVIDEND PAYOUT RATIO

Sumaryata, Kornelia Dian Novianti (2019) THE EFFECT OF INDEPENDENT DIRECTORS ON DIVIDEND PAYOUT RATIO. S1 thesis, UAJY.

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Abstract

This research aims to analyze the effect of independent directors on dividend payout ratio. Independent directors in this research measured by the proportion of independent directors on the board of director. While the dividend payout ratio measured by dividing dividend per share with earning per share. The data used in this study is secondary data obtained from annual reports of companies listed on the Indonesian Stock Exchange in 2014-2016. Sample selection is done by using purposive sampling method. The obtained samples in this research are 393 samples company. This research uses multiple linear regression method to test the hypothesis. The result of this research that obtained from the hypothesis testing shows that independent directors (ID) have a negative effect on dividend payout ratio (DPR). The determination coefficient is 21,2%, while the remaining 78,8% explained by the other variables outside the model.

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