The Role of Blockholders on Dividends Policy Of Indonesian Public Listed Companies

Abdul Azis Safii, Nur Fadjrih Asyik


Blockholders as the majority shareholders of the company are indicated to have the power to determine company policies, including dividends policies. The aim of this research is to investigate the role of blockholders on the dividend policy of Indonesian public companies. The analysis was carried out using 2016-2017 financial report from 213 Indonesian public companies. A linear regression conducted to test the relationship between blockholders on dividend payout ratio, and to determine the moderating role of multiple blockholders. The finding of the study reveal that ownership concentration by blockholders proved to have negative significant influence on the decision the portion of profit distributed on dividends (dividends payout ratio). The moderation model testing result that existence of multiple blockholders is not moderate the relationship of ownership concentration by blockholders and dividend policies. Keywords: blockholders, multiple blockholders, dividend policies.

Full Text:



Anderson, W. (2009). Alternative Event Study Methodology for Detecting Dividend Signals in the Context of Joint Dividend and Earnings Announcements. Accounting and Finance, 49(2), 247–265.

Azhagaiah, R.; & Priya S. (2008). The Impact of Dividend Policy on Shareholders’ Wealth. International Research Journal of Finance and Economics, 181-187.

Brigham, F. & Gordon, J. (1968). Leverage, Dividend Policy, and the Cost of Capital. Journal of Finance, 23, 85- 103.

Chai, D. H. (2010). Foreign Corporate Ownership and Dividends. Working Paper Centre for Business Research, University of Cambridge, 401, 1–40.

Cronqist, H. & Fahlenbrach, R. (2009) Large Shareholders and Corporate Policies. The Review of Financial Studies, 22, 10-38.

Denis, D.J. & Osobov, I., (2008). Why Do Firms Pay Dividends? International Evidence On Determinants Of Dividend Policy. Journal of Financial Economic, 89, 62-82.

Edman, A., (2009) Blockholder Trading, Market Efficiency, and Managerial Myopia, The Journal Of Finance, 15(6), 20-49.

Hamzah A.H., & Zulkifli A. H, (2014) Multiple Shareholders Structure (MSS) and Corporate Financial Policy, Journal of Finance and Bank Management, 2(1), 107-134.

Harada, K. dan Nguyen, P. (2011). Ownership concentration and dividend policy in Japan. Managerial Finance, 37(4), 362 – 379.

Holderness, G. (2003). A Survey of Blockholders and Corporate Control Economic Policy Review, 9(1). 51-64.

Hu, A. & Kumar, P. (2004). Managerial Entrenchment and Payout Policy. Journal of Financial and Quantitative

Analysis, 39(4), 759-790.

Jensen, M. & Meckling, W. (1976). Theory of the Firm: Managerial Behavior Agency Cost, and Ownership Structure.

Journal of Finance Economics, 3, 305-360.

Jensen, M. (1986). Agency Costs of Free Cash Flow, Corporate Finance and Takeovers. American Economic Review. 76 (2) 323-329.

La Porta, R., Lopez d S., Shleifer, A. & Vishny, R.W. (2000) Agency Problems and Dividend Polices around The Wolrd, Journal of Finance, 55(1), 1-33.

Mancinelli, & Ozkan, A. (2006). Ownership structure and dividend policy: Evidence from Italian Firms. The European Journal of Finance, 12, 265-282.

Ramli, N. M. (2010). Ownership Structure and Dividend Policy: Evidence from Malaysian Companies. International Review of Business Research Papers. 6(1), 170–180.

Shleifer, A. & Vishny, R.W. (1986). Large Shareholders and Corporate Control. The Journal of Political Economy, 94(3), 461-488.

Shleifer, A. & Vishny, R.W. (1997). A Survey of Corporate Governance. The Journal of Finance, 52(2), 737-783. Thanatawee, Y. (2013). Ownership Structure and Dividend Policy: Evidence from Thailand. International Journal of

Economics and Finance, 5(1), 121–132.

Ullah, H., Fida A., & Khan, S., (2012). The Impact of Ownership Structure on Dividend Policy Evidence from

Emerging Markets KSE-100 Index Pakistan. International Journal of Business and Social Science. 3(9), 298– 307.


  • There are currently no refbacks.