DIVIDEND PAYOUT OF FAMILY FIRMS ACROSS ASEAN COUNTRIES

• Main Author: Farras (NIM 19014025), Amadea
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/20995
• Institution: Institut Teknologi Bandung

ASEAN Economic Community will soon embody free and open investment market for country members of ASEAN after creating a highly integrated and cohesive economy environment. Investors need to know more about the characteristic of various companies across ASEAN to widen their investments. To provide the information about character towards dividend of firms in ASEAN, especially family firms that dominate the market, this research also analyses founding family influences on dividend payout in ASEAN countries listed in high liquidity index on year 2016. The data in this research is secondary data which <br /> <br /> can be obtained from the company website, financial statements of listed companies, and other verified websites. The samples criterion for this research is the companies in high liquidity and market capitalization index assessed by each country due to the limitation of <br /> <br /> research period.To test some factors hypothesized to be influencing dividend payout, multiple linear regression is used with ownership structure, family stake, and reputation (active management) as independent variables and dividend payout ratio and cash dividends as dependent variables. For Model 1, the dependent variable used is cash dividend with independent variable of ownership variable, which is dummy whether the sample is founding-family firms or not. The second model shows relationship between dividend payout ratio as dividend variable and family stake among founding-family firms. Then the third <br /> <br /> model uses dividend payout ratio as dependent variable and reputation variable of active management for independent variable. The last model is used to see relationship between dividend payout ratio and interaction variable between family stake and active management.The result shows that founding family firms in ASEAN pay lower dividend compared to nonfounding family firms shown in Model 1. However, Model 2 does not show any significant relationship between family stake and dividend payout ratio. Then Model 3 shows that active <br /> <br /> family members involved in management is negatively related to dividend payout ratio. Lastly, Model 4 shows that high family shares owned simultaneously actively managed by family members affect the dividend payout negatively.