Published date: Oct 10 2024

Journal Title: KnE Social Sciences

Issue title: 8th International Conference on Sustainability (8th ICoS): Entrepreneurship and Creative Economics

Pages: 341–351

DOI: 10.18502/kss.v9i28.17224

Kharis Raharjokharisraharjo82@gmail.comDoctoral Program in Economics, University of Merdeka Malang, Malang

Grahita ChandrarinUniversity of Merdeka Malang, Malang

Harmono ‎ University of Merdeka Malang, Malang

Corporate governance and dividends go hand in hand. But are dividends an outcome of, a supplement to, or a substitute for governance practices? That is, high dividends show that the mechanisms for decent returns to investors are in place, and governance is a set of mechanisms for that. Examining the findings and competing models of dividend-corporate-governance relationships is the overarching goal of this research. Listed on the Indonesia Stock Exchange from 2017 to 2021, the sample company is a manufacturer. Control variables include size, beta, return on investment (ROI), and corporate governance proxies such as the governance index score and dividend policy proxies such as the dividend payout ratio (DPR). The method of data collection involves accessing the IDX web for financial and annual reports of manufacturing companies. Data analysis procedures are based on panel regression analysis. According to the outcome model, there is a positive correlation between corporate governance and dividends during the COVID-19 pandemic, and a negative correlation between governance and dividends. Dividends are a result of internal and external processes meant to safeguard the interests of minority shareholders, proving that governance at the firm and national levels is crucial in determining the nature of investor protection.

Keywords: corporate governance, dividend policy, manufacture

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