Does Ceos Hubris Affecting Dividends Payout?

Kris Brantas Abipayu, Bayu Wiratawa

Abstract

The purpose of this research is to examine the effect of CEOs Overconfidence (KDB) on non-financial firms dividend that listed in Indonesia Stock Exchange (IDX) from 2004 to 2013. It is being said that almost every person has overconfidence, similarly with a CEO of a company, particularly because of the scale of power that they hold. CEO with overconfidence has a tendency to lower their dividend payout because they are driven by their subjective consciousness of the possibility of getting an investment opportunity in the future. The samples of this study are 327 companies listed in Indonesia Stock Exchange (IDX). The model is using a logit regression. The result shows that company being lead by CEO with overconfidence will have a tendency to hold or reduce their dividend payout.

Penelitian ini bertujuan untuk mengetahui pengaruh Kepercayaan Diri yang Berlebihan (KDB) dari para CEO terhadap dividen non-financial perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) dari tahun 2004-2013. Hal ini dikatakan bahwa hampir setiap orang memiliki KDB, sama halnya dengan CEO dari sebuah perusahaan. Hal ini terutama karena skala kekuasaan yang mereka pegang. Para CEO dengan KDB memiliki kecenderungan untuk menurunkan pembayaran dividennya karena mereka selalu didorong oleh kesadaran subjektif mereka tentang kemungkinan untuk mendapatkan kesempatan investasi di masa mendatang. Sampel penelitian ini berjumlah 327 perusahaan yang terdaftar di BEI. Model yang digunakan dalam penelitian ini adalah regresi logit. Hasil penelitian ini menunjukkan bahwa perusahaan yang dipimpin oleh CEO dengan KDB akan memiliki kecenderungan untuk menahan atau mengurangi pembayaran dividen.

Keywords

Overconfidence; CEO; dividend; maturity; investment opportunity; BUMN

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