Abstract
Dividend policy inconsistency is a rarely examined phenomenon that happens frequently and dominant. This research examines nine predictors that affect dividend policy inconsistency in manufacturing companies listed on the Indonesian Stock Exchange in 2013–2019. The developed hypotheses were tested using the dynamic panel data regression with FD-GMM and SYS-GMM techniques and three model specification tests. The results showed that profitability and lagged dividend are robust predictors of the two parameters estimated. Furthermore, of the seven unproven hypotheses, four predictors had a significant effect but different directions. Investment opportunity, company size, financial leverage, and company age are predictors proven in the SYS-GMM parameters estimated. These results are a proven predictor for practitioners to consider investors to obtain optimal returns and company management to formulate optimal dividend policies to support a stable and sustainable business. The research originality examined the predictors suspected of affecting dividend policy inconsistency with the relevant statistical tools.
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Availability of data and materials
The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request. All data used in this study available on Bloomberg terminal and the official website of Indonesia Stock Exchange.
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Acknowledgements
The authors thank Prof. Apriani Dorkas Rambu Atahau and Dr. Linda Ariany Mahastanti from Satya Wacana Christian University Department of Management, for the inputs on the elaboration of this research. The authors also thank Dr. Georgina Maria Tinungki from Hasanuddin University Department of Statistics, for the inputs and technical support of statistical analysis and data processing.
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Hartono, P.G., Robiyanto, R. Factors affecting the inconsistency of dividend policy using dynamic panel data model. SN Bus Econ 3, 53 (2023). https://doi.org/10.1007/s43546-023-00431-6
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DOI: https://doi.org/10.1007/s43546-023-00431-6