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"In this paper we develop an optimal dividend policy in the presence of limited rational inves-tors. Concretely, investors with mental accounts for dividends and stock prices as well as emotions like disappointment and elation embody the limited rationality. Furthermore, investors evaluate changes in wealth instead of final wealth. A management maximizing investors' 'modified' utility results in the optimality of dividend payments as well as dividend smoothing, which both have long been puz-zles to financial theorists. Moreover, a model specification leads to a gradual dividend adjustment to changes in net earnings as described by Lintner (1956)." (author's abstract)

Purpose: The main objective of this study is to examine whether the dividend policy of Indonesian firms is based on agency theory or stewardship theory. The study investigates the relationship between profitability, non-discretionary accruals, discretionary accruals and dividend policy. Design/Methodology/Approach: The final sample of this study is a total of 28 firms of consumers' goods industries listed in Indonesia Stock Exchange during the period of 2010 to 2017 and conducts logistic regression for hypotheses testing. Findings: The result of the first model shows that ROA and non-discretionary accruals (non-disc) have positive sign and they are significant on dividend policy. The second model shows that ROA has a positive and significant effect on dividend policy, while non-disc is insignificant on dividend policy. The third model shows that ROA and non-disc are consistently positive and significant, while discretionary accruals are consistently insignificant on dividend policy. The fourth model shows that ROA and non-disc have positive sign and significant on dividend policy, while disc is insignificant on dividend policy. The fifth model shows that ROA and non-disc have a positive and significant sign on dividend policy, while DAR, AG and disc are insignificant on dividend policy. The results of profitability on all models also indicate that the objective of managers for most Indonesian dividend payers are align with the objective of stockholders in context of stewardship. The findings imply that most of firms as payers tend to increase dividends when their profitability increases. Practical Implications: It appears that dividend payers with strong profitability as based on their policy, generally do not engage in managing its earnings while reporting the accounting information. Originality/Value: The study provides empirical evidence for dividend policy in context of agency and stewardship perspectives. This study also identifies the behavior of firm insiders whether play as an agent or steward in relationship with their principals. ; peer-reviewed

The puzzle for dividend policy in Indonesia is still remain since the firms have uncertain distribution for dividends to their shareholders. The objectives of this study are testing the free cash flow theory, life cycle theory, and catering theory with 139 firms as samples which is listed in Indonesia Stock Exchange for period of 2010 to 2015. This study finds that, firms in Indonesia are not at mature level and there is an existence for free cash flow effect on dividend payers with lower debt only, while catering effect is generally exist for firms as dividend payers. Furthermore, since the firms as non dividend payers are on growth level then they are generally use their profit and capital gain includes debts in purposes of investment activities. ; peer-reviewed

Indeed, corporate dividend policy and taxation is a subject of intense research. Mostly, statutory amendments in the dividend tax practice fabricate the dividend payout policy of corporate sector. At times, corporate composing substantial promoters' securities are identified to keep a major objective to curtail their dividend payout. The study aims at analyzing the interaction between dividend policy and taxation. This paper provides a brief contribution of the diverse thoughts on the clientele effect for analyzing the impact of taxation on corporate dividend policy and finds that the temporal pattern of corporate dividend payout and dynamic dividend behavior have significant impact on taxation in variety of modalities. The findings have significant implication for companies, investors and the Government.