The effect of trade policy uncertainty, free cash flow, investment opportunity set, and liquidity on dividend policy of food and beverage sub-sector companies listed on the Indonesia Stock Exchange, 2022–2025 (The Contrarian Finance Accounting and Business Research)

Summary

• The study analyzes a balanced panel of 27 food and beverage sub-sector companies listed on the Indonesia Stock Exchange across 108 firm-year observations from 2022 to 2025.p.1
• Manufacturing tariffs are recorded at 4.7% in 2024 and rise to 5.7% in 2025, according to UNCTAD data.p.2
• The regression model demonstrates low overall explanatory power with an overall R² of 0.0812.p.7

Key insights

1. A one-standard-deviation increase in geopolitical risk increases IPO underpricing by approximately 14% based on 2,933 Chinese IPOs from 2010 to 2023.p.2
2. Model selection procedures confirmed the Random Effects Model (REM) as the preferred estimator following Chow, Hausman, and Lagrange Multiplier tests.p.7
3. The positive correlation between IOS and DPR runs counter to pecking-order theory predictions, aligning instead with signaling and market valuation perspectives.p.10