Dividend policy in Indonesian banking sector during COVID-19 pandemic period

Figures & data

Table

Company Code on IDX	Company
AGRO	PT Bank Raya Indonesia Tbk.
BBKP	PT Bank KB Bukopin Tbk.
BDMN	PT Bank Danamon Indonesia Tbk.
BJBR	PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk.
BNBA	PT Bank Bumi Arta Tbk.
BNGA	PT Bank CIMB Niaga Tbk.
BNII	PT Bank Maybank Indonesia Tbk.
BNLI	PT Bank Permata Tbk.
MAYA	PT Bank Mayapada Internasional Tbk.
MEGA	PT Bank Mega Tbk.
SDRA	PT Bank Woori Saudara Indonesia 1906 Tbk.

Source: www.idx.co.id.

Table 2. Variables and their proxies

Variable	Proxy	Formulation	Expected Sign
Dividend Policy	Dividend Payout Ratio	$DPS=\frac{TotalDividend}{OutstandingShares}$	—–
Crisis due to the COVID-19 Pandemic	Gross Domestic Product Growth	$GDPGrowth=\frac{GD{P}_t-GD{P}_{t-1}}{GD{P}_{t-1}}$	(+)
	Inflation Rate	The data obtained from the Central Statistics Agency of Indonesia	(+)
Profitability	Earnings Per Share	$EPS=\frac{NetIncome}{OutstandingShares}$	(+)
Financial Leverage	Debt to Equity Ratio	$DER=\frac{TotalLiability}{TotalEquity}$	(-)
Investment Opportunity	Market Price to Book Value ratio	$PBR=\frac{MarketPriceperShare}{BookValueperShare}$	(-)
Bank Size	Total Assets	$TA=naturallogarithmicofTotalAsset$s	(+)
Banking Liquidity	Loan to Deposit Ratio	$LDR=\frac{ThirdPartyCreditAmount}{ThirdPartyTotalFunds}$	(-)
Previous Year Dividend	Lagged-1 Dividend	$PYD=Lagged1ofDPS$	(+)

Sources: Alzomaia and Al-Khadhiri (2013); Basse et al. (2014); Hartono and Robiyanto (2023); Hartono et al. (2023); Imran et al. (2013); Kosasih et al. (2021); Kullab et al. (2022); Nadeem et al. (2018); Naveenan et al. (2021); Ong et al. (2018); Patra et al. (2012); Rahma and Syarif (2019); Ramadani and Jumono (2020); Silalahi et al. (2021); Wahjudi (2020); Yusuf and Muhammed (2015).

Table 3. Descriptive statistic

Proxies	N	Min	Max	Mean	St. Dev.
DPS	110	0.000	301.561	35.169	50.780
GDP	110	−2.070	6.170	4.587	2.270
INF	110	1.680	8.380	4.234	2.180
EPS	110	−99.718	433.957	98.893	114.468
DER	110	3.209	14.748	7.207	2.721
PBR	110	0.293	5.695	1.532	1.108
TA	110	14.902	19.454	17.879	1.263
LDR	110	0.537	1.623	0.886	0.157

Source: www.idx.co.id, processed

Table 4. Arellano–Bond test

Order	GDP				INF
	FD-GMM		SYS-GMM		FD-GMM		SYS-GMM
	z	Prob. > z	z	Prob. > z	Z	Prob. > z	Z	Prob. > z
(1)	−0.825	0.409	−2.705	0.007	−0.518	0.604	−2.096	0.036
(2)	−0.890	0.374	−1.840	0.066	−0.563	0.573	−1.290	0.197

Source: www.idx.co.id, processed.

Table 5. Sargan Test

Indicator	GDP		INF
	FD-GMM	SYS-GMM	FD-GMM	SYS-GMM
${\chi }^2$	4.249	4.102	2.672	5.273
$Prob.>{\chi }^2$	1.000	1.000	1.000	1.000

Source: www.idx.co.id, processed.

Table 6. Dynamic panel data regression analysis and unbiased test for GDP proxy

Proxy of Exogen Variable	LSDV-RSE	FD-GMM	SYS-GMM	OLS-RSE
Constant	236.671*** (98.845)	499.737 (545.247)	260.104 (422.821)	111.695*** (45.040)
DPS L1.	0.113** (0.074)	0.564** (0.370)	0.180*** (0.097)	0.230** (0.156)
GDP	−3.051** (1.944)	−1.905*** (0.895)	−1.901* (1.775)	−2.612** (2.044)
EPS	0.436*** (0.115)	0.497*** (0.089)	0.374*** (0.064)	0.348*** (0.064)
DER	−3.253*** (1.244)	4.018 (4.570)	−4.496*** (1.350)	−0.481 (0.896)
PBR	2.211 (2.290)	−3.188 (3.951)	−8.637 (10.514)	0.136 (1.795)
TA	−11.708*** (5.069)	−29.046 (36.406)	−7.278 (23.244)	−3.899*** (1.904)
LDR	−9.084 (24.026)	−31.297 (163.392)	−97.261 (84.996)	−40.704*** (19.316)
No. of Instrument	—–	43	51	—–
No. of obs.	99	88	99	99
No. of group	11	11	11	—–
Wald	—–	6547.92***	1663.57***	—–
F-statistics	76.09***	—–	—–	29.19***
R2	0.728	—–	—–	0.798

Source: www.idx.co.id, processed.

Description: the numbers in parentheses are the standard error and robust standard error values. In one-tailed statistics, *** means a significance level of α = 5%, ** means a significance level of α = 10%, and * means a significance level of α = 15%.

Table 7. Dynamic panel data regression analysis and unbiased test for INF proxy

Proxy of Exogen Variable	LSDV-RSE	FD-GMM	SYS-GMM	OLS-RSE
Constant	261.873*** (79.442)	5874.540*** (3141.251)	415.581** (302.442)	126.686*** (39.811)
DPS L1.	0.156*** (0.057)	1.633*** (0.734)	0.252*** (0.057)	0.268*** (0.143)
INF	−3.140*** (1.192)	−14.200*** (6.484)	−2.641*** (1.028)	−3.449*** (1.315)
EPS	0.412*** (0.109)	0.560*** (0.088)	0.373*** (0.037)	0.337*** (0.058)
DER	−2.455*** (0.769)	24.199** (16.343)	−5.421*** (1.795)	0.021 (0.844)
PBR	2.072 (2.339)	−94.957*** (52.470)	−1.041 (9.526)	0.071 (1.750)
TA	−13.683*** (4.537)	−343.994*** (184.163)	−20.970** (15.566)	−4.722*** (1.723)
LDR	−2.657 (25.825)	270.426*** (137.920)	−5.947 (41.640)	−40.113*** (19.382)
No. of Instrument	—–	43	51	—–
No. of obs.	99	88	99	99
No. of group	11	11	11	—–
Wald χ2	—–	11249.00***	3754.55***	—–
F-statistics	78.21***	—–	—–	26.72***
R2	0.724	—–	—–	0.806

Source: www.idx.co.id, processed

Description: the numbers in parentheses are the standard error and robust standard error values. In One-tailed statistics, *** means a significance level of α = 5%, ** means a significance level of α = 10%, and * means a significance level of α = 15%.

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