The effect of ownership structure on dividend policy of manufacturing companies

, Abstract This study aims the impact of ownership structure on dividend on manufacturing firms that registered on IDX and MYX during 2015-2019. This research uses regression method as quantitative measurement level. The research used objects as many as 455 and 500 observations on the Indonesia and Malaysia Stock Exchange Market. Clarification variables as the free factors in this inquire about are remote possession, family possession, and organization proprietorship. The comes about of the think about utilizing perceptions on IDX found that family proprietorship and regulation proprietorship have a critical positive impact, whereas remote proprietorship has an immaterial negative impact on dividen payout proportion. The results of the study using observations on the MYX proof that institutional ownership has a impact positive effect, while the rest has an inimpact positive on dividend payout ratio.


Introduction
Good Corporate Governance (GCG) is important to study because it can affect the performance of a company. Berle and Means (1932) argue that the ownership structure is spread over the minority shareholders but control remains concentrated in the majority shareholders. Before investing in a company, it is necessary to know in advance the ownership structure of the company so that it can avoid principal-agent conflicts.
La Porta et al., (1999) stated that most companies are controlled by families and the government. Shleifer and Vishny (1997) say that when the overwhelming shareholder is claimed by the family, they tend to require advantage of the circumstance for their claim purpose like giving a expansive compensation, beat administrative positions, and giving board seats to families. Companies with family possession structures frequently have clashes between lion's share shareholders and minority shareholders. According to Faccio et al., (2001), family-controlled East Asian firms pay less dividends to minority shareholders. The existing research has variety results, so there is still a chance to study in this subject.
Al-Najjar and Kilincarslan (2016) conducted a study on the topic of the impact of ownership structure on dividend policy in Turkey. The results are that in Turkey is dominated by family-owned companies. Al-Najjar and Kilincarslan (2016) found that the effect of family ownership was impactly positive with dividend payments. This means that companies with family ownership structures in Turkey pay quite high dividends. Rajverma et al., (2019) also do research about the impact of ownership structure on dividends, debt, and capital in India. From this study, it was found that the effect of family ownership structure has a impact positive relationship with dividend payments. Setiawan et al., (2016) conducted research about the influence of ownership structure on dividend policy in Indonesia. From the results of this study, it was found that the structure of a family-owned company has a impact negative relationship with dividend payments. H1: Family ownership structure has impact effect on dividend payout ratio. Setiawan et al., (2016) found that the foreign ownership structure has a impact positive relationship with dividend payments. This is because foreign investors have great global investment experience and are efficient in evaluating company performance. H2: Foreign ownership structure has impact effect on dividend payout ratio.
Al-Najjar and Kilincarslan (2016) state there is a impact positive effect of institutional ownership structure on dividend payments. Rajverma et al., (2019) also do research on institutional ownership structure on dividend payments. The results obtained are that there is a impact positive effect between institutional ownership structure on dividend payments. H3: Institutional ownership structure has impact effect on dividend payout.

Research Methods
Type of research is basic research because it has a purpose, to enhance the empirical results that has been proof previously. The relationship of variable in this research is causal because it studies the effect of the foreign ownership structure, family ownership structure, and institutional ownership as independent variable and DPR as dependent variable of manufacturing sector firms listed on the IDX and the MYX during 2015-2019. The approach of this study is quantitative research because it uses secondary data to found the influence between ownership structure and dividends.
The type of data is quantitative and Panel Data because combines time series and cross section. This study uses annual report of manufacturing sector firms listed on the Indonesia and the Malaysia Stock Exchange Market during 2015-2019.
The data processing method used is multiple linear regression. This method is used to find the relationship of dividend payout ratio with three independent variables (FAM, FOR, and INST), and two control variables (ROA and firm size). This study uses only one regression model. The equations used are:

Result and Discussions
This study uses samples of manufacturing companies listed on the Indonesia Stock Exchange and the Malaysia Stock Exchange for the 2015-2019 periods. The Indonesian sample has 91 observations, and the Malaysian sample has 100 observations. The descriptive statistics in table 1 show the  Indonesian sample and table 2 shows the Malaysian sample. In table 1, the average dividend payout ratio is 29% with an average foreign ownership of 1.98%, family ownership of 11.57%, institutional ownership of 75.79%, return on assets of 6.6% and firm size of 28.75%. In table 2, the average dividend payout ratio is 33.04% with an average foreign ownership of 3.22%, family ownership of 31.03%, institutional ownership of 47.8%, return on assets of 5.89 %, and firm size of 16.06%. After descriptive statistics, next is the classical assumption test. The test will be carried out where the model used passes the multicollinearity, autocorrelation, and heteroscedasticity tests. Observations 500 500 500 500 500 500 In table 3, the comes about appear that the family proprietorship variable contains a critical positive impact on the profit payout proportion of companies recorded on the Indonesia Stock Trade for the 2015-2019 period. Firms with family ownership pay high dividends to avoid agency problems. This result is supported by Rajmaverma et al (2019) that family ownership has a impact positive effect on dividend payout. On outside proprietorship variable, the comes about appear a noteworthy positive impact on the profit payout proportion of companies recorded on the Indonesia Stock Trade for the 2015-2019 periods. Foreign investors increase the efficiency of the company by providing more monitoring of the activities of the company's management and also have good investment experience and also better assess company performance.
In table 3, it appears that the organization possession variable incorporates a critical positive impact on the profit payout proportion of companies recorded on the Indonesia Stock Trade for the 2015-2019 periods. This result supported by Rajverma et al., (2019) who was faund the institutional ownership and dividend payout ratio had a impact positive effect on the dividend payout ratio. Institutions act to monitor the company's management to be more efficient. By paying higher dividends, company monitoring will be more proper it is more efficient.
The comes about appear that the ROA variable features a critical negative impact on the profit payout proportion of companies recorded on the Indonesia Stock Trade for the 2015-2019 period. This result is supported by research conducted by Setiawan et al., (2016) which states that the ROA variable has a impact negative effect on the dividend payout ratio. With these comes about, we will take conclusion that in case a company is more productive at that point the company is more likely to pay profits. Something else, on the off chance that a company has lower benefits, the company is less likely to pay dividen.
In table 3, the comes about gotten are that the firm estimate variable includes a critical negative impact on the profit payout proportion of companies recorded on the Indonesia Stock Trade for the 2015-2019 period. This noteworthy negative result is backed by inquire about by Rajverma et al., (2019), which is noteworthy negative. This implies that the measure of the company does not essentially influence the level of profit installments. In table 4, family possession variable encompasses a critical positive impact on the profit payout proportion of companies recorded on the Malaysia Trade for the 2015-2019 periods. Firms with tall family possession pay tall profits as a way to maintain a strategic distance from office issues. Rajverma et al., (2019) expressed that family possession contains a noteworthy positive impact since profits serve as a source of pay for directors.
The results show that the foreign ownership variable has a impact positive effect on the dividend payout ratio of companies listed on the Malaysia Exchange for the 2015-2019 periods. This is because foreign investors increase company efficiency by setting global standards and better global practices. Foreign investors have a wealth of experience related to global investment and can efficiently assess company performance. This result is supported by Setiawan et al (2019).
In table 4, the results show that the institutional ownership variable has a impact positive effect on the dividend payout ratio of companies listed on the Malaysia Exchange for the 2015-2019 periods. According to Farinha (in Al-Najjar and Kilincarslan, 2016), the relationship between institutional ownership variables and dividend payout has a impact positive effect. This is because institutions can force companies to pay higher dividends in order to promote better monitoring by the capital market.
Return on assets variable results show that it has a impact positive effect on the dividend payout ratio of companies listed on the Malaysia Exchange for the 2015-2019 periods. Al-Najjar and Kilincarslan (2016) stated that there was a impact positive effect between the return on assets variable on dividend payout. These results can be interpreted if a company is more profitable then the company is more likely to pay dividends.
In table 4, the results show that the firm size variable has a impact positive effect on the dividend payout ratio of companies listed on the Malaysia Exchange for the 2015-2019 periods. Al-Najjar and Kilincarslan (2016) and Setiawan et al., (2016) state that the FS variable has a impact positive relationship to dividend payout. These results mean that the larger the company, the more likely it is to pay dividends.

Conclusion
In the Malaysian regression results, the results show that the independent variables and control variables such as institutional ownership, ROA, and firm size together have a impact effect on dividend payout ratio in manufacturing sector companies listed on the Malaysia Stock Exchange in the 2015-2019 periods. In the Indonesian regression results, it show that the independent variables and control variables of family ownership, institutional ownership, and firm size have a impact effect on dividend payout ratio. Another independent variable, foreign ownership, shows an impact effect on the dividend payout ratio of manufacturing sector companies listed on the Indonesia Stock Exchange for the 2015-2019 periods.
The comes about of this ponder can be utilized as a reference for advance investigate. The ponder has different confinements, the companies utilized within the ponder are as it were fabricating division companies recorded on MYX and IDX, and the time period of the information utilized is as it were five a long time. It is trusted that encourage inquire about can include other objects.