Resumen
Dividend policy is still a controversy in corporate finance area, since public firms are distributing the earnings differently. By conducting multinomial logistic regression analysis with 241 firms as samples which is listed in Indonesia Stock Exchange for period of 2010 to 2015, this study is testing the firm behavior to pay dividends under catering theory, free cash flow theory, and life cycle theory. This study reports, the firm behavior to pay dividends in general are depend on size and age with some fundamental factors, such as debts, current net profit, and retained earnings. The market reactions are significant and directly affecting the firm behaviors for distributing their dividends in relationship with firm characteristics and considering the performance of fundamental factors. Moreover, the maturity level and tendency of internal conflict are randomly spread into larger and older firms, larger and younger firms, smaller and older firms, and smaller and younger firms.