Investment opportunity set, dividend policy, company’s performance, and firm’s value: Some Indonesian firms evidence

Abstract

The availability of investment opportunity set at state-owned companies and the dividend policy taken by state-owned company management should be signals in the company's efforts to improve performance. Therefore, both the Investment Opportunity Set (IOS) and dividend policy can be factors driving corporate performance. Thus, state owned-companies can further enhance firm value. We examined the effect of the IOS and dividend policy on company performance and firm value. The sample used in this study was the state-owned company listed at the Indonesia Stock Exchange and observed for 5 years, from 2013 to 2017. Data were collected using a purposive sampling method. This study had 13 sample companies that were processed using the panel data regression method. We found the first result revealed that dividend policy had a positive effect on company performance, which had a positive effect on firm value. Besides, the IOS was observed to have a positive impact on firm value. The second result showed that the IOS did not affect the company's performance, and dividend policy did not influence the firm's value. Thus, those results proved that the company's performance could provide a signal to the firm's value.

The Effect of Financial Policy on the Performance of Industrial Companies in the Insurance Sub-Sector in Indonesia

“…It can be interpreted that an increase in the investment opportunity set will increase the company's value. The results of this study support the results of previous research by Resti et al (2019), the Investment Opportunity Set was observed to have a positive impact on firm value. Research by Ehie and Olibe (2010) shows that the investment opportunity set has a significant effect on firm value.…”

Analisis pengaruh diversifikasi terhadap nilai perusahaan keluarga dan non keluarga di Indonesia

“…Perusahaan dinilai dapat mengelola keuangannya dengan baik dan dapat melakukan pengeluaran investasi yang memberikan keuntungan dimasa yang akan datang. Sehingga keuntungan tersebut dapat membuat perusahaan semakin berkembang dan akan berdampak pada nilai perusahaan (Resti et al, 2019;Septiana & Riswandari, 2020;Sinurat et al, 2017). H3a Tobin's q berpengaruh signifikan negatif nilai perusahaan keluarga.…”

“…Tobin's q menunjukkan nilai probabilitas di bawah 0,05 dan koefisien sebesar 0,659502 sehingga tobin's q memiliki pengaruh yang signifikan positif terhadap nilai perusahaan dan hipotesis ditolak. Hasil penelitian ini sejalan dengan penelitian yang dilakukan oleh Khuzaini et al (2017), Frederica (2019), Resti et al (2019) dan Septiana & Riswandari (2020).…”

Interaksi Kinerja Keuangan dalam Meningkatkan Nilai Perusahaan (Studi pada Subsektor Makanan dan Minuman yang Tercatat di BEI Periode 2019-2021)

“…Beberapa hasil penelitian menunjukkan bahwa kinerja keuangan yang baik mampu meningkatkan nilai perusahaan (Martha et al, 2018;Minanari, 2018;Puspitaningtyas, 2017;Sukmawardini dan Ardiansari, 2018). Hal tersebut cukup membuka ruang untuk mengkombinasikan antara leverage dengan kinerja keuangan dalam meningkatkan nilai perusahaan, dimana variabel kinerja keuangan lazim digunakan sebagai intervening dan moderasi di beberapa penelitian sejenis (N. A. Dewi dan Gustyana, 2020; Fitriasari dan Sari, 2019; Jayanti dan Binastuti, 2018; Patricia et al, 2018;Resti et al, 2019;Suranto et al, 2017).…”