(The Effect of Agency Costs, Systematic Risk, and Investment Opportunities on Dividend Policy of Companies Listed at Indonesian Stock Exchange 2009-2013)

Abstract

This research is aimed to analyze the effect of agency cost, systematic risk, and investment opportunities on dividend policy. The population of this study comprises manufacturing companies listed in Indonesia Stock Exchange from 2009-2013. Samples consist of 19 companies selected using purposive sampling method. It uses secondary data from the firm’s financial reports. It uses multiple linear regression analysis. The results show all examined variables have significant influence on dividend policy. Free cash flow has negative influence, systematic risk has negative influence, and market to book value of equity has negative influence on dividend policy.