Impact of Business Risk and Board of Directors Size on Dividend Policy in ASEAN-5 During the COVID-19 Pandemic

The objective of this investigation is to scrutinize the determinants influencing the dividend policies of financial sector firms listed on the stock exchanges in each of the ASEAN-5 countries, namely Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Employing a purposive sampling method, this research encompasses a sample of 195 companies meeting specific criteria during the COVID-19 pandemic spanning from 2020 to 2022. Researchers employed a probit model logistic regression, utilizing Eviews 12 software, to assess the impact of business risk and board size on dividend policy. The outcomes indicate that the independent variable of business risk exerts a negative influence on dividend policy, whereas the independent variable of board size exhibits a positive effect. Additionally, the research introduces a control variable, Gross Domestic Product (GDP), revealing a negative impact on dividend policy. The outcomes of this research serve as a managerial tool for enhancing company performance and augmenting dividend disbursements, thereby capturing the attention of shareholders.