The Role of Capital Structure on The Effect of Dividend Policy and Business Risk on Firm Value (Evidence from Indonesian Manufacturing Company)

Irawati, Anggit Esti; Komariyah, Erna Fitri

doi:10.33312/ijar.463

Cited by 7 publications

(19 citation statements)

References 44 publications

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“…In investing, investors need to collect information as one of the considerations in making investment decisions in the capital market. The higher the value of DPR, the higher the profitability of the company and the return that investors will receive.This is in accordance with the research results of [28], [18], [29], [22], [30], [24], [31], [32], [9], [12], [18], [33], [27], [14], and [34] that dividend policy affects firm value. Different research results found [17], [13], [35], [16], and [5] that dividend policy had no effect on firm value.…”

Section: Introductionsupporting

confidence: 90%

“…Therefore, the company's policy in managing dividends is not the only important benchmark for investors in assessing the company. The results of this study support of [17], [24], [12], [25], and [10] https://ijersc.org results of this study contradict the research of [28], [12], [29], [22], [30], [24], [31], [32], [9], [12], [18], [33], [27], [14], and [34] that dividend policy affects firm value.…”

Section: The Effect Of Dividend Policy On Firm Valuesupporting

confidence: 58%

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

Saputri¹,

Bahri²

2021

IJERSC

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This study aims to examine the effect of leverage, profitability, and dividend policy variables on firm value in property and real estate companies listed on the Indonesia Stock Exchange for the 2018-2020 period. This type of research is causal associative. The research population is 64 companies. The sample was determined by purposive sampling technique as many as 11 companies. Data analysis used multiple linear regression analysis. The test results show that leverage as proxied by debt to equity ratio (DER) has no significant effect on firm value, profitability proxied by return on equity (ROE) has a significant effect on firm value, and dividend policy proxied by dividend payout ratio (DPR) has no significant effect on the value of the company. Investors pay more attention to the company's ability to earn profits and its management.

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Section: Introductionsupporting

confidence: 90%

Section: The Effect Of Dividend Policy On Firm Valuesupporting

confidence: 58%

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

Saputri¹,

Bahri²

2021

IJERSC

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“…Therefore, if the capital gain is bigger, then the investors might expect a bigger capital gain than the dividend. The results are different from Irawati and Komariyah (2019) mentioning a positive influence of dividend policy on the capital structure. Moreover, based on Brigham and Houston (2010), dividend payments made by a company to shareholders may affect the company's external balance.…”

Section: N P R E S Scontrasting

confidence: 82%

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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“…In relation to firm value, business risk controls the fluctuations in future profits. According to Irawati & Komariyah (2019), business risk describes the potential for the failure of an organization. This failure can interfere with the company's ability to generate profits on investment, and in certain circumstances, it can affect the company's overall performance.…”

Section: Business Risk and Firm Valuementioning

confidence: 99%

Role of Profitability, Business Risk, and Intellectual Capital in Increasing Firm Value

Pangestuti

Muktiyanto

Geraldina

et al. 2022

JIEB

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Introduction/Main Objectives: This research illustrates the importance of firm value, both to investors and companies. Investors assess that an increase in the value of a company indicates a positive view of the company's performance, which leads to an investment decision. Besides that, an increase in the value of the company can indicate that the company is getting closer to achieving its goal, namely increasing the welfare of its stakeholders. Background Issues: In recent years, there has been a decline in the value of firms in the mining sector due to various factors that have affected it, which has resulted in a decrease in the value of the shares in several of the sub-sectors, especially the coal mining and petroleum sub-sectors. Novelty: This study examines the business risk and intellectual capital that are typical of firms in the mining industry with the generalized moments’ methods. Research Methods: This research is a quantitative study that uses the generalized moments methods, where the robust least square test determines which model is more suitable for use in the research. The variables in this study consist of profitability, intellectual capital, and business risk, with variable controls being the gold price, exchange rate, and petroleum price. This study uses annual financial statements from mining companies that are listed on the Indonesia Stock Exchange. These statements include balance sheets and income statements. Finding/Results: These findings reveal that profitability, intellectual capital, and business risk affect the value of a company. Macroeconomic factors as the variable controls, namely gold prices, exchange rates, and petroleum prices, also affect the value of a company. Therefore, based on the research’s results, management must pay attention to internal factors or company micro factors (profitability, intellectual capital, and business risks) and macroeconomic factors (gold prices, exchange rates, and petroleum prices) to increase company value. This is because investors use these factors when making decisions to invest in the mining sector. Conclusion: There are several important factors that, in principle, increase the value of a company. These factors come from internal and external factors (macroeconomics). This article successfully demonstrates the importance of profitability, intellectual capital, and business risk in supporting firm value. The results also showed that the gold price, exchange rate, and the price of oil have an effect on the price of mining stocks, which are used to measure changes in the economy

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The Role of Capital Structure on The Effect of Dividend Policy and Business Risk on Firm Value (Evidence from Indonesian Manufacturing Company)

Cited by 7 publications

References 44 publications

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

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

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

Role of Profitability, Business Risk, and Intellectual Capital in Increasing Firm Value

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