Earnings, Tax and Dividend Policy

One of the reasons that attract investors to invest its money in shares is the dividends that they will receive. What are the factors affecting a firm’s decision to pay out dividend? A group of researchers from Bina Nusantara University tried to study this, using 1688 firm-year observations of Indonesian firms from 2012 to 2016. In their research, they found that prior year’s earnings and contributed capital are the two significant determinant of firms’ dividend policy. Meanwhile, corporate tax was found to be insignificant factor. Access to full paper can be found at  https://doi.org/10.26905/jkdp.v23i1.2581