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Do We Need a Regulation on Dividends for Indonesia Stock Exchange?

Gadjah Mada International Journal of Business (GamaIJB) · Vol. 20 No. 1 (2018) · pp. 33–58

DOI
10.22146/gamaijb.25055
ISSN
2338-7238, 1411-1128
Published
2018-04-27
Publisher
Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
Language
eng
License
creativecommons.org/licenses/by-sa/4.0

Abstract

This study examines the dividend life-cycle hypothesis and the propensity of non-financial firms listed on the Indonesia Stock Exchange (IDX) to pay dividends, in light of a recent idea by the IDX to regulate dividend payments. Using several proxies of the life cycle, the results consistently show that Indonesian listed firms follow the dividend life-cycle hypothesis. Our results recommend that if the authority insists on regulating dividend payments, the regulation should take into account the firms’ life cycles. Firms should only be required to pay dividends when they reach a certain stage and/or meet defined characteristics, according to their stage or characteristics.

Keywords

Collaboration network of the authors

7 authors · 9 co-authorship links · 1 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Universitas Gadjah Mada
  • Sanata Dharma University
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Jogiyanto HartonoUniversitas Gadjah Mada1
Mamduh Mahmadah HanafiUniversitas Gadjah Mada1
Setiyono SetiyonoUniversitas Gadjah Mada1
Lukas PurwotoSanata Dharma University1
Eddy JunarsinUniversitas Gadjah Mada1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.ugm.ac.id/gamaijb/oai, first harvested 28 Okt 2026, last seen 1 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">Do We Need a Regulation on Dividends for Indonesia Stock Exchange?</dc:title>
	<dc:creator>Wardhana, Leo Indra</dc:creator>
	<dc:creator>Tandelilin, Eduardus</dc:creator>
	<dc:subject xml:lang="en-US">Business; Finance</dc:subject>
	<dc:subject xml:lang="en-US">Dividend life-cycle, Dividend policy, propensity to pay dividends, earned/contributed capital, Indonesia Stock Exchange</dc:subject>
	<dc:subject xml:lang="en-US">G35; G32</dc:subject>
	<dc:description xml:lang="en-US">This study examines the dividend life-cycle hypothesis and the propensity of non-financial firms listed on the Indonesia Stock Exchange (IDX) to pay dividends, in light of a recent idea by the IDX to regulate dividend payments. Using several proxies of the life cycle, the results consistently show that Indonesian listed firms follow the dividend life-cycle hypothesis. Our results recommend that if the authority insists on regulating dividend payments, the regulation should take into account the firms’ life cycles. Firms should only be required to pay dividends when they reach a certain stage and/or meet defined characteristics, according to their stage or characteristics.</dc:description>
	<dc:publisher xml:lang="en-US">Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada</dc:publisher>
	<dc:contributor xml:lang="en-US"></dc:contributor>
	<dc:date>2018-04-27</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.ugm.ac.id/gamaijb/article/view/25055</dc:identifier>
	<dc:identifier>10.22146/gamaijb.25055</dc:identifier>
	<dc:source xml:lang="en-US">Gadjah Mada International Journal of Business; Vol 20, No 1 (2018): January-April; 33-58</dc:source>
	<dc:source>2338-7238</dc:source>
	<dc:source>1411-1128</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/view/25055/20962</dc:relation>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/downloadSuppFile/25055/1840</dc:relation>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/downloadSuppFile/25055/1881</dc:relation>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/downloadSuppFile/25055/1882</dc:relation>
	<dc:rights xml:lang="en-US">Copyright (c) 2018 Gadjah Mada International Journal of Business</dc:rights>
	<dc:rights xml:lang="en-US">http://creativecommons.org/licenses/by-sa/4.0</dc:rights>
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