The study was aimed at knowing the effect of agency cost and firm life
cycle toward dividend policy. Dependent variable used in this study was dividend
policy that measured by dividend payout ration, and independent variables that
used were insider ownership, collaterizable asset, free cash flow, debt to equity
ratio, firm size and firm life cycle.
The populations were the manufacture industries listed on Indonesia Stock
Exchange in the period of 2011 – 2014 and published on www.idx.co.id. The
samples were 12 firm. The data were collected by using purposive sampling
technique and were analyzed by using descriptive statistic, classical assumption
test, multiple regression analysis, determination coefficient (R²), simultaneous test
(F test) and partial test (t test)
The result showed that insider ownership affected negatively and
significantly toward dividend policy. Collaterizable asset affected positively and
unsignificantly toward dividend policy. Free cash flow affected positively and
unsignificantly toward dividend policy. Debt to equity ratio affected negatively
and unsignificantly toward dividend policy. Firm size affected positively and
significantly toward dividend policy. Firm life cycle affected negatively and
significantly toward dividend policy.