The Effect Of Leverage, Profitability, And Dividend Policy On Firm Value

Saputri, Diah Ragil; Bahri, Syaiful

doi:10.51601/ijersc.v2i6.223

Cited by 17 publications

(20 citation statements)

References 14 publications

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“…Because investors see from various sides of the financial statements. The results are also supported by previous research from Saputri & Bahri (2021) that DER (debt to equity ratio) has no effect on company value.…”

Section: Discussionsupporting

confidence: 87%

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The Effect of Profitability, Intangible Asset, and Leverage on Dividend Policy and Firm Value

Tessya Nova,

Sutrisno

2023

IJEBMR

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The increasing population in Indonesia has resulted in the need for consumption of primary goods to be very rapid. In addition, economic development has made competition increasingly fierce in the world of trade, which operates in various sectors, for example in consumer noncyclicals companies. This study aims to examine the effect of profitability, intangible assets, leverage on dividend policy and corporate value of main board index companies in the consumer non-cyclicals sector on the Indonesian stock exchange during the 2017-2021 period. Profitability is measured by return on assets (ROA), intangible assets are measured by the logarithm of the book value of intangible assets (IAS), leverage is measured by the debt to equity ratio (DER), dividend policy is measured by the dividend payout ratio (DPR) and company value is measured by price to book value (PVB). The population of this study is the health sector companies that are on the Indonesia Stock Exchange as many as 57 companies and 26 are taken as samples. The data collection period is from 2017 to 2021, with annual data. This study uses multiple linear regression analysis to test the hypothesis. The results show that profitability and leverage have no significant effect on dividend policy. Meanwhile, intangible assets have a negative and significant effect on dividend policy. Profitability and leverage have no significant effect on firm value. Meanwhile, intangible assets and dividend policy have a positive and significant effect on dividend policy.

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Section: Discussionsupporting

confidence: 87%

“…An increase in dividend payments can be a positive alert for investors because they consider the company to have good and profitable prospects in the future. This is explained in research (Saputri & Bahri, 2021). Profitability on dividend policy Profitability (ROA) in this study was found to have no effect on dividend policy.…”

Section: Discussionmentioning

confidence: 50%

The Effect of Profitability, Intangible Asset, and Leverage on Dividend Policy and Firm Value

Tessya Nova,

Sutrisno

2023

IJEBMR

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“…The better the profitability, the better the company's financial performance, which results in an increase in the company's stock price, so that the share price and the number of outstanding shares will affect the increase in company value. The results of this study strengthen the results of previous studies which found a positive effect of profitability on firm value, such as research conducted by Sucuahi and Cambarihan (2016), Cheryta, Moeljadi, and Indrawati (2017), Fajaria and Isnalita (2018, Hirdinis (2019), Khushi, et.al (2020), Saputri and Bahri (2021).…”

Section: Effect Of Profitability On Firm Valuesupporting

confidence: 89%

“…This theory is supported research by Sucuahi & Cambarihan (2016) which shows that profitability has a significant positive effect on firm value. The same results were shown by Cheryta, Moeljadi, and Indrawati (2017), Fajaria and Isnalita (2018), Hirdinis (2019), Khushi, et.al (2020), Saputri and Bahri (2021) which states that profitability has a positive influence or relationship to company value. Based on this description, the hypothesis can be formulated as follows: H 1 : Profitability has a positive effect on Firm Value.…”

Section: Hypotheses Effect Of Profitability On Firm Valuesupporting

confidence: 76%

Effect of Profitability, Leverage, Liquidity, Free Cash Flow on Company Value with Dividend Policy as Moderating in Basic and Chemical Industrial Companies Listed on the Indonesia Stock Exchange for the 2017-2021 Period

Sinaga

Maksum

Sirojuzilam

2022

IJEC

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This study aims to examine and analyze the effect of Profitability, Leverage, Liquidity and Free Cash Flow on Firm Value with Dividend Policy as a Moderating Variable. The population in this study were 66 companies in the Basic Industry and Chemical Sector which were listed on the Indonesia Stock Exchange (IDX) for the period 2017 - 2021, using a purposive sampling technique so that 61 samples were obtained for 5 years with a total of 305 observational data. Methods of data analysis using panel data regression analysis with the help of the Eviews application program. The results of the study show that partially Profitability, Leverage, Liquidity and Free Cash Flow have a positive and significant impact on Firm Value. Meanwhile, Dividend Policy as a moderating variable is unable to moderate the effect of Profitability, Leverage, Liquidity and Free Cash Flow on Firm Value.

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“…Kilincarslan [57] asserts that regulatory constraints concerning capital adequacy standards substantially impact the formulation of dividend policies. The regulations mandate that banks maintain a predetermined level of capital to prevent further losses [62]; therefore, Putri and Wiksuana [63] argue that this directly affects their ability to distribute dividends. However, by limiting dividend distributions, strict capital requirements ensure financial institutions maintain financial robustness.…”

Section: Regulatory Impactmentioning

confidence: 99%

Quantitative Analysis and Comparative Review of Dividend Policy Dynamics within the Banking Sector: Insights from Global and U.S. Financial Data and Existing Literature

Olaniyi,

Shah,

Bahuguna

2023

AJEBA

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This paper presents a comparative review of academic research on dividend policies and payments within the banking sector. Dividends represent a critical area of focus due to their implications for bank capital levels, profitability, regulatory compliance, and investor signaling. The literature reviewed spans pre- and post-2008 financial crisis periods and adopts both global and emerging market perspectives. Methodologies include regression analyses, causality tests, descriptive statistics, and financial ratio computations based on regulatory filings, financial statements, and market data datasets. Key findings demonstrate the multifaceted nature of bank dividend strategies, differences across countries, shifts during crises, and complex interplays with financial health metrics. The studies find evidence that dividends provide valuable signals to investors on earnings prospects, aligning with signaling theories. However, interpreting crisis-induced behaviors warrants caution due to short-term deviations. Opportunities exist for further analysis of cross-country variances, crisis responses, and linkages to bank stability. This comparative review enhances academic comprehension of bank dividend policies' motivations, outcomes, and determinants. It highlights the need for judicious balancing of stakeholder demands for returns and growth, an increasingly crucial endeavor amidst global uncertainty.

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The Effect Of Leverage, Profitability, And Dividend Policy On Firm Value

Cited by 17 publications

References 14 publications

The Effect of Profitability, Intangible Asset, and Leverage on Dividend Policy and Firm Value

The Effect of Profitability, Intangible Asset, and Leverage on Dividend Policy and Firm Value

Effect of Profitability, Leverage, Liquidity, Free Cash Flow on Company Value with Dividend Policy as Moderating in Basic and Chemical Industrial Companies Listed on the Indonesia Stock Exchange for the 2017-2021 Period

Quantitative Analysis and Comparative Review of Dividend Policy Dynamics within the Banking Sector: Insights from Global and U.S. Financial Data and Existing Literature

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