The Moderating Role of Dividend Policy on The Influence of Liquidity, Profitability, Leverage, and Investment Opportunity Set Against Stock Return Registered in The Jakarta Islamic Index

Mufidah, Nailul; Sucipto, Agus

doi:10.24856/mem.v35i2.1553

Cited by 6 publications

(9 citation statements)

References 13 publications

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“…The profitability enhancement will increase the shared dividend so that the investors can give more value to the company (Ramdhonah et al, 2019). The results are in line with Mufidah and Sucipto (2020). The dividend policy weakens the leverage relation to the stock return.…”

Section: N P R E S Ssupporting

confidence: 84%

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Dividend Policy as Moderating Variable to the Consumer Goods Company on the Indonesia Stock Exchange

Toni

Simorangkir

Goh

2021

Binus Business Review

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The capital market in Indonesia includes many companies from several sectors. One company that cannot be separated from the Indonesian stock market is a consumer goods company. The research aimed to analyze the effect of profitability and capital structure on the company with dividend policy as moderating variable to the consumer goods companies registered on the Indonesia Stock Exchange in the period of 2014-2018. The population in the research was consumer goods companies with subsector of food and drink, cigarette, cosmetic pharmacy, and household goods and appliances. The research applied purposive sampling and obtained 15 companies with 5 years of observation or around 75 samples. Then, the data were analyzed using Smart PLS 3.0. The analysis result shows that profitability, capital structure, and company size positively and significantly influence the company value. However, dividend policy cannot moderate the effect of profitability and capital structure on the company value. The dividend policy can moderate the effect of company size on the company value. Then, profitability, capital structure, and company size influence the company value of 88,6%, while the other factors influence the rest. Investors should decide on issuers with high profitability above 5%, the optimal capital structure with the debt-to-equity ratio between 0,8-1,2, and total assets above five trillion Rupiah.

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Section: N P R E S Ssupporting

confidence: 84%

“…In this case, profitability shows the overall performance of the company. The increase in profit can enhance the company's profitability (Mufidah & Sucipto, 2020). The company value is influenced by profitability that dividend policy cannot moderate the effect of profitability on company value.…”

Section: N P R E S Smentioning

confidence: 99%

Dividend Policy as Moderating Variable to the Consumer Goods Company on the Indonesia Stock Exchange

Toni

Simorangkir

Goh

2021

Binus Business Review

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“…If a company cannot pay off its short-term debt, it does not mean that its level of liquidity is low. Liquidity has a significant impact on share returns [4]. In contrast to other studies, liquidity has insignificant impact on shares returns.…”

Section: Liquidity With Shares Returncontrasting

confidence: 72%

The Impact of Liquidity, Profitability, and Activity on Shares Return With Dividend Policy as Controlling Variable

Hastuti,

Andrew,

2023

ijaeb

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This study was conducted to examine the impact of liquidity, profitability and activity variables on shares returns which can be controlled by dividend policy. This study uses secondary data with a population of financial report data published on capital market. The sample taken is only the issuers of manufacturing companies. The data obtained were 52 issuers using purposive sampling method. Statistic application programs are programs used in processing and analyzing data. The final conclusion of this study shows that the liquidity and activity variables have an impact on shares returns, while the profitability variable has no impact on shares returns. The test by including the controlling variable Dividend policy concluded that the controlling variable was not able to moderate the relationship between liquidity, profitability, and activity on shares returns.

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“…Following the first two hypotheses, we test separately the influence of firm specific characteristics for Shariah compliant companies. A number of researchers in the past have deliberated their views with respect to liquidity and profitability asset tangibility for Shariah companies (Mufidah and Sucipto, 2020). We, therefore, continue the research trend by testing the influence of some of the firm specific variable on the relationship between effective tax rate and capital structure and Dividend policy.…”

Section: Corporate Tax In Malaysiamentioning

confidence: 98%

Corporate tax policy, Shariah compliance and financial decisions: evidence from Malaysia

Ramachandran,

Hidajat,

Izadi

et al. 2024

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PurposeThis study investigates the influence of corporate income tax on two corporate financial decisions — dividend and capital structure policies, particularly for Shariah compliant companies in Malaysia.Design/methodology/approachThe study considered data from a sample of 529 Malaysian listed companies from four industrial sectors from 2007–2021 (6,746 company-year observations, before eliminating outliers). Panel models such as Fixed Effect and Random effect models were used. The study specifically tested the effect of corporate income tax on dividend and capital structure policies for Shariah compliant companies (3,148 observations) and controlled for industrial sectors.Findings(1) Firms are mostly Shariah-compliant, less liquid, less profitable and smaller in size, (2) Broadly when analysed together, tax has no impact on debt-equity ratio while it has an impact on dividend per share, (3) However, when tested separately for Shariah compliant companies, the influence of effective tax on capital structure is very evident but not for dividend and (4) influence of industrial sector on the relationship between corporate tax and capital structure and dividend policy is significant. Results indicate that Shariah firms might be raising debt to gain tax advantage. Companies in general pay dividends to avoid reputational damage.Research limitations/implicationsThis study assumes that leverage and dividend policy decisions are the main outcomes of the changing tax policies, while it seems that there could be other important outcomes that can be tested in future research. The study also shows the changing tax regimes of different ASEAN countries but they have not been tested to see the differences between countries. It will be indeed interesting for future researchers to focus on this aspect.Originality/valueThe findings contribute to the literature on tax planning of the Shariah-compliant firms, a high growth business segment in the Asian context. The study discussed potential tax-based Islamic market product development.

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The Moderating Role of Dividend Policy on The Influence of Liquidity, Profitability, Leverage, and Investment Opportunity Set Against Stock Return Registered in The Jakarta Islamic Index

Cited by 6 publications

References 13 publications

Dividend Policy as Moderating Variable to the Consumer Goods Company on the Indonesia Stock Exchange

Dividend Policy as Moderating Variable to the Consumer Goods Company on the Indonesia Stock Exchange

The Impact of Liquidity, Profitability, and Activity on Shares Return With Dividend Policy as Controlling Variable

Corporate tax policy, Shariah compliance and financial decisions: evidence from Malaysia

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