This research aims to test dividend signaling theory in an Indonesian capital market. Signaling theory states that … dividend policy has information content that can influence to share price. Examination of theory of signaling is related to … research phenomena in other countries indicating that by percentage there is degradation of company which is pay dividend and …

to reduce cash holdings, raise leverage ratios, and peg dividend payouts and stock repurchases more closely to changes in …

The long-term return behaviour of dividend-changing firms has been investigated in the study and it is estimated that … 23 percent only incremental profits are transformed into dividend. The remaining profits are utilized for the additional … investment. It is also concluded that concentration of ownership is also an important factor of the dividend payments. The …

, which employs a minute-by-minute trade and quote data recorded during the ex-dividend days of common stocks listed on NYSE …, AMEX and NASDAQ. Dufosky’s (1992) model concluded that the asymmetric adjustment of open limit orders for cash dividend … payments under the NYSE and AMEX rules is sufficient to create abnormal returns on the ex-dividend day. Empirical evidence …

&D-intensive firms exhibit lower leverage, a shorter debt maturity, a lower dividend payment and a higher cash level. …