Managerial Control and Profit Distribution: Empirical Evidence from Indonesia’s Manufacturing Sector
DOI:
https://doi.org/10.55927/ijcs.v2i7.66Keywords:
Dividend Policy, Profitability, Managerial OwnershipAbstract
This study investigates the influence of profitability on dividend policy and examines the moderating role of managerial ownership in this relationship. Using a sample of 141 manufacturing firms listed on the Indonesia Stock Exchange from 2012 to 2021, also employing Pure Moderation and Moderated Regression Analysis (MRA), the findings reveal that profitability positively affects dividend payout, while leverage has a negative effect, and liquidity has a positive effect. Managerial ownership negatively influences dividend policy but does not significantly moderate the profitability-dividend link. These findings offer valuable insights for firms and regulators in designing governance structures that balance managerial control with shareholder interests, particularly in emerging markets where ownership and management often overlap
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