This observational analysis reveals how institutional ownership moderates business risk's negative effect on dividend policy, suggesting careful investment strategies.
Key Points
Investment opportunity and business risk negatively impact dividend policy, affecting firms' financial strategies.
Moderated Regression Analysis showed institutional ownership moderates the relationship between business risk and dividend policy but not investment opportunity.
Findings align with pecking order theory, emphasizing internal financing, and clientele theory, showing shareholder preferences influence dividends.
Research focused on 311 firms listed on the Indonesia Stock Exchange from 2021 to 2023, providing a significant data sample.