Independent Director of Managers and Paid Dividends

I. Sanjaya, Kornelia Sumaryata

2019

Abstract

Independent director is new issue in Indonesia. Existing independent director in the company will reduce agency problem in the company. Because he/she has a role to protect the interests of non-controlling shareholders. Independent director in the team of managers confirms that company implements good corporate governance. The objective of this research is to investigate whether independent director influence paid dividend. Independent director is measured by the proportion of independent directors on the board of directors (managers). Dividend is measured by dividend payout ratio. Data of the research is collected from the Indonesian Stock Exchange from 2014-2016. This study uses purposive sampling method for collecting data. The obtained samples in this research are 393 firm years. The result of the study is independent director negatively influence paid dividend. Negatively result is caused by significant role of controlling shareholder to vote independent director on the general meeting of shareholders.

Paper Citation

in Harvard Style

Sanjaya I. and Sumaryata K. (2019). Independent Director of Managers and Paid Dividends. In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA, ISBN 978-989-758-582-1, pages 353-363. DOI: 10.5220/0009870300002900

in Bibtex Style

@conference{miicema19,
author={I. Sanjaya and Kornelia Sumaryata},
title={Independent Director of Managers and Paid Dividends},
booktitle={Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,},
year={2019},
pages={353-363},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009870300002900},
isbn={978-989-758-582-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,
TI - Independent Director of Managers and Paid Dividends
SN - 978-989-758-582-1
AU - Sanjaya I.
AU - Sumaryata K.
PY - 2019
SP - 353
EP - 363
DO - 10.5220/0009870300002900