Analysis of the Effect of Information Asymmetry on Dividends

DOI

10.2991/aebmr.k.200127.003How to use a DOI?

Keywords

information asymmetry, dividend policy, growth opportunity, profitability, risk

Abstract

This study aims to examine the effect of information asymmetry on the dividend policy of non-financial companies listed on the Indonesia Stock Exchange. Basically, there is information asymmetry between managers and investors in which investors only know company information through dividend information, while managers have all the company’s actual internal information. The study used a sample of companies that pays dividends listed on the Indonesia Stock Exchange and a control variable of growth opportunity (market-to-book ratio, asset structure), firm size, firm risk, and profitability. The findings of this study concluded that information asymmetry does not significantly influence the dividend policy of non-financial companies listed on the Indonesia Stock Exchange. The dividend payment is not influenced by the high or low asymmetry of the available information; this is because the dividend payment policy is an expensive policy.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - L. Ernestin
AU  - W.R. Murhadi
AU  - B.S. Sutejo
PY  - 2020
DA  - 2020/01/31
TI  - Analysis of the Effect of Information Asymmetry on Dividends
BT  - Proceedings of the 17 th International Symposium on Management (INSYMA 2020)
PB  - Atlantis Press
SP  - 13
EP  - 16
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200127.003
DO  - 10.2991/aebmr.k.200127.003
ID  - Ernestin2020
ER  -