MODERATING EFFECT OF GOOD CORPORATE GOVERNANCE TOWARD IMPACT OF FINANCIAL PERFORMANCE ON DIVIDEND POLICY IN INDONESIA MOST TRUSTED COMPANIES 2011–2015

Abstract

This study’s purpose is to prove that Good Corporate Governance can strengthen the impact of financial performance on company's dividend policy. This study was conducted using panel data on four companies that participated in Indonesia Most Trusted Companies research 2011-2015. The results of Moderated Regression Analysis showed that financial performance and Good Corporate Governance have a negative and significant effect on dividend policy, whereby these results are not aligned with theories and hypotheses which might be affected by the declining in the global economy. However, Good Corporate Governance is still proven to strengthen the effect of financial performance on dividend policy as quasi-moderator.