Dividend policy is one of the important company policy, because it can be a signal for investors to see the value of the company. The dividend policy in each company has different characteristics from one another. This study aimed to examine the effect of leverage, the investment opportunity set, managerial ownership, and corporate governance on dividend policy. The sample in this study were 115 companyyear listed in the Indonesia Stock Exchange and distribute dividends during the period 2010

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... 2012. This study used multiple linear regression to analyze the data and test the hypothesis. The results showed that the dividend policy is infl uenced by the investment opportunity set measured by a price-earnings ratio and the market value of equity to book assets. Meanwhile, fi nancial leverage, managerial ownership, corporate governance, and fi rm size as control variables did not signifi cantly affect dividend policy.