Research Paper
Year: 2022 | Month: June | Volume: 9 | Issue: 6 | Pages: 412-422
DOI: https://doi.org/10.52403/ijrr.20220644
Factors Affecting Firm Value with Dividend Policy as a Moderating Variable in Manufacturing Companies Listed on the Indonesia Stock Exchange
Dewi Indah Permata Sari Sinaga1, Abdillah Arif Nasution2, Erwin Abubakar33
1,2,3Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia .
Corresponding Author: Dewi Indah Permata Sari Sinaga
ABSTRACT
Firm value is the market value of a company's equity plus the market value of debt. The value of the company can describe the state of the company. Many factors affect the company's value, including investment decisions, company size, profitability, and institutional ownership.
This study is a quantitative study that aims to determine the effect of investment decisions, firm size, profitability, and institutional ownership on firm value. The research population is manufacturing companies listed on the Indonesia Stock Exchange. Determination of the sample using inclusive criteria means 26 companies x 10 years = 260 issuers. The data collection method uses a documentation study based on the company's financial statements, and data analysis uses a panel data regression program (Eviews). The results of research and data analysis using the Eviews program prove that investment decisions (Price to Earnings Ratio), Company Size (Ln total assets), Profitability (Return On Equity), and Institutional Ownership (INSWN) have a simultaneous effect on a firm value (p = 0.000< 0.05). Investment decisions (Price to Earnings Ratio) partially affect the firm value (p=0.018<0.05). Total assets partially affect firm value (p=0.013>0.05). Profitability (Return On Equity) has a partial effect on firm value (p = 0.000 <0.05). Institutional ownership partially affects firm value (p=0.000<0.05). Dividend policy is proven to moderate the effect of investment decisions (Price to Earnings Ratio), Firm Size (Ln total assets), Profitability (Return On Equity), and Institutional Ownership (INSWN) on firm value (p<0.05). This research suggests that the manufacturing companies listed on the Indonesia Stock Exchange pay more attention to aspects that affect the firm value so that the firm value can be further increased.
Keywords: Investment Decision (PER), Company Size, Profitability (ROE), Institutional Ownership (INSWN), Firm Value (PBV) .
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