Model of Firm Value – Indonesian Stock Exchange Case

Abstract

Aim of the research is to investigate whether cash dividend tax, institution ownership and retained earning (RE) influence on dividend policy and their implications on the firm value (FV). Based on panel data of 73 companies that listed in Indonesian stock exchange, the results of research using Eviews 10 version application as follows: Institution ownership has positive dan significant influenced on dividend policy. However, cash dividend tax has negative influence on dividend policy insignificantly and RE has positive and insignificant influenced on dividend policy. Cash dividend tax, institution ownership and RE together have significant influence on dividend policy. Cash dividend tax has positive and significant influence on FV. Institution ownership and RE have negative and significant influence on FV. Cash dividend tax, institution ownership, RE, dividen policy have significant influence on FV. Cash dividend tax, institutional ownership, dan RE have direct connection on FV while dividend payout ratio fails to be as intervening variable on FV.

Analyzing the Impact of Dividend Policy on the Value of Listed Companies- Insights from India

“…Their study investigates how firms' innovation activities, R&D investments, and patent portfolios influence dividend policies and subsequent market valuation. Liang, Wu, and Xu's [6]study investigates the impact of dividend policy on firm valuation during financial distress. They explore how firms' financial health, liquidity constraints, and risk management strategies influence dividend policies and their implications for firm value in challenging economic periods.…”

Analisis Faktor-Faktor Yang Mempengaruhi Profitabilitas Dan Implikasinya Pada Corporate Value

“…Nilai perusahaan dapat diukur menggunakan pendekatan analisis rasio berdasarkan nilai pasar (market value) yang mencakup price earnings ratio (PER), market book ratio (MBR), price book value ratio (PBVR), dan dividend payout ratio (DPR). Pengukuran rasio Tobins'Q dihitung atas kondisi perusahaan untuk jangka waktu yang lama sebagai bentuk kepercayaan publik atas perusahaan (Elim, 2019). Penentuan nilai perusahaan selalu menjadi domain utama bagi kalangan akademisi dan praktisi yang menarik untuk dianalisis dengan melibatkan beberapa faktor seperti skala perusahaan dalam ukuran tertentu, likuiditas dan leverage perusahaan serta faktor profitabilitas yang menjadi anteseden untuk melihat kinerja keuangan perusahaan.…”

Earnings Management as an Finance Strategy for Company Image

“…Institutional ownership is assets or ordinary shares owned by organizations, government agencies, the private sector and other institutions (Chabachib et al, 2019;Elim, 2019). The ownership structure of the organization functions as a control system that oversees management so that it works appropriately and optimally, following the interests of shareholders.…”

“…Studies conducted Panda and Leepsa (2019), report that institutional ownership can reduce managers' moral hazard behaviour. A study Elim (2019) reports that institutional ownership is not a predictor of earnings management actions, but studies Kusumawati and Setiawan (2019) report that institutional ownership increases management behaviour in seeking opportunities to manage earnings.…”