Analysis of Dividend Policy in Islamic Financial Management in Indonesia

Abstract

This paper explores the principles and practices of dividend policy within Islamic financial management, emphasizing its adherence to Shariah law, which mandates justice, transparency, and the prohibition of interest (riba) and speculation (gharar). The analysis underscores the distinct aspects of Islamic dividend policies, which aim for ethical distribution of profits based on actual business performance, contrasting with conventional finance's debt-reliant models.