Analysis Of Factors Affecting Firm Value (Empirical Studies On Food And Beverage Sub-Sector Industry Companies Listed On Idx In 2014 – 2020)

Abstract

This study aims to determine the effect of profitability, dividend policy, firm size, and debt policy on firm value in the Manufacturing sector of the food and beverage sub-sector listed on the Indonesia Stock Exchange (IDX) in 2014-2020. The ratios used in this study include Price to Book Value (PBV), Return on Equity (ROE), Dividend Payout Ratio (DPR), Log Total Assets, and Debt to Equity Ratio (DER). This study used 10 companies as research samples with 7 years of observation, resulting in 70 observations. This research uses Eviews version 10 program with panel data analysis method. The method used in sampling in this study, namely purposive sampling technique. The results showed that simultaneously profitability (ROE), Dividend Policy (DPR), Firm Size (Log Total Assets), and Debt Policy (DER) variables had an effect on firm value, and partially Profitability (ROE) and Debt Policy (DER) variables. has a positive and significant effect on firm value. Then the Dividend Policy (DPR) has a negative and significant effect on firm value. While Firm size (Log Total Assets) has no effect on firm value in the company

Exploring the Impact of Esg Disclosure, Dividend Payout Ratio, and Institutional Ownership on Firm Value: A Moderated Analysis of Firm Size

“…Dang, Vu, Ngo, & Hoang (2021) and Nurokhmah & Laksana (2022) proved a positive and significant effect of dividend policy on the firm value as explained by the signaling theory. However, Dwi, Putri, & Kisman (2022) and Nguyen, Pham, Doan, Nguyen, & Truong (2021) reported contrasting results, where there was a negative and significant effect of dividend policy on the firm value. According to Black & Fisher (1976), the more the researches on dividend, the more unsolved the puzzle is.…”

“…Furthermore, a previous study revealed that the DPR has a negative and significant effect on the firm value using a sample of 450 companies in Vietnam during the period of 2008-2019 (Nguyen et al, 2021). Dwi et al (2022) examined the food and beverage industries in IDX-listed companies during the period of 2014-2020 and found a negative effect between the two. Therefore, the second hypothesis that can be proposed is as follows: H 1b : DPR has a positive and significant effect on the firm value.…”