ABSTRACT
The purpose of this study is to investigate what drives firms to pay dividend, especially for those firms that have had finance pattern debt through a non-financial listed company on the Indonesia Stock Exchange between 2010-2014. The idea behind the research is that the researchers will investigate how the companies with higher default risk pay the dividend through the good mechanism of corporate governance. The results show that there is a significant relationship between finance pattern, blockholder ownership and company size towards dividend payment. On the other hand, there is no significant relationship between the Board of Directors (BOD) ownership and firm performance towards dividend payment. This paper uses the literature by extending the understanding of a country in an emerging market, so that this research will encourage the non-financial listed companies who have higher debt to create better performance through good corporate governance when paying dividend to the investors.
