Business Risk as a Moderating the Effect of Institutional Ownership and Managerial Ownership on Dividend Policies

ABSTRACT : This study aims to determine the effect of institutional ownership and managerial ownership ondividend policy with business risk as a moderating variable. The population of this study is focused on manufacturing companies on the Indonesia Stock Exchange for the 2016-2019 period, amounting to 144 companies. Based on the criteria for determining the sample by purposive sampling method and outlier data expenditure obtained a sample of 12 companies. The analysis technique used is Moderated Regression Analysis(MRA). The results of the analysis show that business risk does not moderate the effect of institutionalownership on dividend policy in manufacturing companies on the Indonesia Stock Exchange, while businessrisk weakens the effect of managerial ownership on dividend policy in manufacturing companies on theIndonesia Stock Exchange.

Keywords: Institutional Ownership, Managerial Ownership, Business Risk, Dividend Policy.