Factors Influencing of Dividend Payout in Indonesia Stock Exchange

Generally dividend policy is a problems that is often encountered management and shareholders. In decision dividend policy, management have to make an optimal dividend policy decide the proportion earnings will be given to shareholders and the amount earnings that will be maintained to finance its new investment projects so that to increases future earnings (Mui and Mustapha, 2016). In addition, management also needs to objective in choosing investment that has good prospects, and not otherwise choose investment could even reduce earnings at the expense of earnings that should be distributed to shareholders (Al-Malkawi, 2007). Dividend policy can help to reduce the agency cost.