Tax preference theory explains that investors tend to prefer capital gains if compared to dividends. The dividend tax rate exceeds the capital gains tax rate [6]. However, profits from capital gains do not provide certainty in the future, so companies must maintain dividend payments to investors, even in small amounts. Investors also like companies that pay low dividends for tax reasons [25]. Meanwhile, according to [26], the tax preference theory provides a more relevant explanation of income levels for investors, namely the level of dividends or capital gains and the amount of income after deducting taxes. If the capital gains tax rate uses a lower dividend tax rate, this type of stock with an ever-increasing growth rate will attract investors. It would be the opposite if capital gains were deducted by an amount of tax equal to the income level from profits or dividends. Therefore, the level of profit from capital gains would decrease.

According to [27], a dividend policy is related to a company's decision to distribute income in the form of dividends or retained earnings for future investment. An optimal dividend policy is required by company management to produce a balance between current dividends and future growth. Therefore, based on investors' preferences between cash dividends or capital gains, management should determine the dividend payout ratio. Meanwhile, according to [28], dividend policy is a decision to reinvest profits from company operations or distribute them to shareholders (investors). A dividend policy is a policy or decision whether profits earned by the company are distributed to shareholders as dividends or retained in the form of retained earnings to finance future investments (Weston and Thomas, 1992 in [25]. This policy will involve two parties with different interests: the first party is the shareholder, and the second party is the company's management. This dividend payment can usually be calculated using the Dividend Payout Ratio (DPR). Dividend Payout Ratio (DPR) is a ratio that shows the percentage of each profit earned that is distributed to shareholders in the form of cash [8].

The effect of tax avoidance on dividend policy is associated with the tax preference theory. This theory says that investors prefer dividends to capital gains because the dividend tax rate is less when compared to the tax rate on capital gains [6]. Tax is also an element that always exists as long as the company makes a profit. If management believes in tax preference theory, the company will not distribute dividends and will retain the profits it earns [7]. Companies that avoid taxes tend to have a higher dividend policy. This can happen because the company has more cash because it avoids paying taxes and distributes it to shareholders in the form of dividends. This means shareholders can expect higher dividend payments [8].

H1: Tax avoidance has a positive effect on dividend policy.

Miller and Modigliani (1961) in [29] stated that, in a frictionless world, dividend policy would not affect shareholder wealth. However, dividend policy can cause agency problems within the company. This could be an agency problem between controlling shareholders and managers or non-controlling shareholders. One type of takeover action that can be carried out by controlling shareholders is through related party transactions. Research from [7] regarding the relationship between cash dividend payments and related party transactions, especially the loan component to related parties, found a negative relationship between the number of related party transactions and cash dividend payments. This shows companies that deal with many related parties will pay less cash dividends. Research from [10] shows the large impact of related party transactions on cash distribution.

Sales affect the basic profit for dividend distribution. Therefore, more sales transactions with associates will significantly affect company profits [11], [12].

H2: Related party transactions have a positive effect on dividend policy.

Dividend policy has a significant role in aligning the interests of management and shareholders. Additionally, IC can help align the interests of shareholders and managers. Inparticular, a company's ability to report the characteristics of intangible assets in its financial statements increases the efficiency of IC. It reduces misalignment of interests by reducing its costs [15]. [16] explains that investors tend to like high dividends, so one strategy companies can build is to optimize the role of intellectual capital as an intangible asset. Intellectual capital can create competitive advantages that differentiate one company from another. Increasing intellectual capital can increase a company's competitiveness in the capital market. When a company's competitiveness increases, it can benefit the company so that its value can also increase. It increases the dividends that shareholders will receive [30]. H3: Intellectual capital has a positive effect on dividend policy.

H3: Intellectual capital has a positive effect on dividend policy.

According to [31], managerial ownership can be used as an internal control mechanism that aligns the interests of agents and principals in agency contracts. Managerial ownership is very important to control their behavior to run the business according to applicable regulations and not violate Indonesian regulations. Corporate governance mechanisms always strive to ensure no party is harmed in business. Corporate governance will ensure that the company carries out related party transactions in the interests of shareholders by distributing dividends that limit takeover by managers or controlling shareholders [20]–[22].

[8] These results indicate that corporate governance disclosure did not significantly moderate the effect of tax avoidance on cash dividend policy in this study. [7] explains that good corporate governance can moderate and strengthen the effect of related party transactions on cash dividends. Good corporate governance has independent commissioners who control the actions taken by management to align the company’s rules and vision. Good Corporate Governance will make management more careful in avoiding taxes through related party transactions. Lastly, maximized intellectual capital done by a company supported by supportive managerial policies will have an impact on significant business growth to maximize shareholder profits. Research conducted by [24] and [15] explains that intellectual capital and corporate governance are essential pillars for companies in building added value and competitive advantage.

H4: Managerial ownership moderates the relationship between tax avoidance and dividend policy.

H5: Managerial ownership moderates the relationship between related tax transactions and dividend policy.

H6: Managerial ownership moderates the relationship between intellectual capital and dividend policy.

Tax avoidance will affect the net profit earned by the company, which will be distributed to shareholders in the form of dividends. Therefore, tax avoidance will benefit investors because they will get a high return on their investment. In addition, the study’s results confirm one of the theories specifically addressing taxes, namely the tax preference theory, which explains that investors prefer dividends over capital gains. Regulations in Indonesia stipulate that the dividend tax is smaller than the capital gains tax. Study Kuswanto [32] suggests that investors are generally risk averters. A relatively stable dividend distribution reduces the risk of uncertainty of return expected by investors, so investors will prefer companies that pay dividends regularly because the risk is lower. Companies that have a dividend payout ratio that is high and stable will be more trusted by investors. This will cause the volatility of companies with high dividend payout ratios, and their stock prices will tend to be more stable or less volatile [33], [34].

Companies with a high dividend payout ratio are considered companies with sufficient funds to finance investment and company expansion (retained earnings). They also have enough funds to pay dividends to investors [10]. Investors will view this company as a company with a lower risk than a company that has a smaller dividend payout ratio or even a company that has a zero dividend payout ratio, which means the company does not pay dividends to investors. Investors avoid risk, so companies with a more negligible risk tend to be more desirable and trusted by investors. This has implications for lower stock price volatility [12], [35].

Related party transactions positively affect dividend policy, and this shows that dealings with related parties can boost efficiency by transferring resources, obligations and debts to other parties. The projection of related party transactions with related party transactions of other receivables significantly affects the dividend projection variable with the dividend payout ratio, which means H2 is accepted. This research aligns with [10] which shows the magnitude of the impact of related party transactions on cash distribution. Profit, which is the basis for dividend distribution, is influenced by sales. Therefore, more sales transactions with associated parties will significantly affect the company’s profits [11], [12]. The greater the company’s profits, the more cash dividends it can distribute. However, since management is responsible for achieving company goals, company managers decide whether to declare cash dividends. A company’s growth ability can be hampered if cash dividends are distributed in increasingly large amounts [13], [14].

The results of the study show that companies can use intellectual capital to improve their business performance to impact the rate of return that investors will get. Study Septiansyah and Asmara [16] explains that investors tend to like high dividends, so one of the strategies that can be built by companies is by optimizing the role of intellectual capital as an intangible asset. Intellectual capital can create competitive advantages that can differentiate one company from another. Studies on intellectual property on direct dividend policy are rarely found. Still, researchers assume that increasing income levels through increased performance and firm value will directly increase the dividend payout ratio. Studies conducted by Inkinen [17] report that intellectual capital has a positive influence on firm value; namely, the more effective management of intellectual capital, the higher the value of the company. A company's performance will be optimal if the company has a competitive advantage that can generate company value [17], [18]. Increasing intellectual capital can increase the competitiveness of companies in the capital market; when the competitiveness of companies increases, it can benefit the company so that the company's value can also increase, which will affect the increase in dividends that shareholders will receive [30].

Managerial ownership is the percentage of management ownership in a company. One of the factors that influence the occurrence of tax avoidance and related party transactions is weak corporate governance. According to [31], one of the reasons for weak corporate governance is the lack of managerial ownership, resulting in more significant information asymmetry, which provides opportunities for managers to behave in moral hazard. Managerial ownership can be used as an internal control mechanism that aligns the interests of agents and principals in agency contracts. Research shows that managerial ownership weakens the relationship between tax avoidance and dividend policy. Managers will be more careful in implementing tax planning policies to avoid harming investors in the long term. Managerial ownership is essential to control their behavior so that they run a business following applicable regulations and do not violate regulations in Indonesia. Corporate governance mechanisms always strive to ensure that no party suffers losses in business. Corporate governance will ensure that companies carry out related party transactions for the benefit of shareholders by distributing dividends that limit takeover by managers or controlling shareholders [20]-[22]. This research aligns with [23], which explains that good corporate governance can moderate and strengthen the effect of related party transactions on cash dividends. Good corporate governance has an independent commissioner who controls the actions taken by the management to align the rules and vision of the company. Good Corporate Governance will make management more careful in avoiding taxes through related party transactions. Finally, intellectual capital appropriately maximised by companies supported by supportive managerial policies will impact significant business growth to maximize shareholder returns. The study conducted by [24] explains that intellectual capital and corporate governance are essential pillars of companies in building added value and competitive advantage.