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Abstract
Using a sample of firms from the manufacturing sector of the Indonesia Stock Exchange. We examine the effect of internal corporate governance mechanisms-specifically supervisory boards, independent directors, and managerial ownership-on firms' dividend distributions. The data collected were analysed using multiple regression. We find a significant positive relationship between supervisory boards and independent directors on dividend payout, suggesting that the rise of board size and proportion of independent directors can increase payouts and cause changes in dividend policies. In line with the alignment effect of managerial ownership, our results support the positive relationship between managerial ownership and dividends.