Corporate Governance on Dividend Policy and Firm Value in LQ45 Index Companies

Abstract

This study aims to analyze the effect of corporate governance,
which includes family, institutional, managerial, and foreign
ownership, on dividend policy and firm value, as well as the
moderating role of independent directors in LQ45 companies.
Purposive sampling method is used to select 43 LQ45 companies
as research samples. The analysis method used is multiple linear
regression analysis using data from the annual reports of
companies listed on the Indonesia Stock Exchange (IDX). The
findings of this study state that institutional ownership has a
significant negative effect on dividend policy, with the
independent director variable as a moderating variable. In
addition, this study also shows that there is no effect of corporate
governance through dividend policy as a mediating variable on
firm value.