Financing Decision and Divident Policy to Corporate Value

Thamrin, KM. Husni and Sulastri, Sulastri and Mukhlis, Mukhlis and Bashir, Abdul and Lestari, Hilda Tri and Isnurhadi, Isnurhadi (2020) Financing Decision and Divident Policy to Corporate Value. 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019), 1 (1). pp. 223-229. ISSN 2352-5428

	Text seabc-19/125940801 - Published Version Restricted to Registered users only until 23 May 2022. Download (28kB)
	Text seabc-19/125940801 - Published Version Restricted to Registered users only until 23 May 2022. Download (28kB)

Abstract

This study aimed to examine the effect of the capital structure which was proxied by debt-equity ratio, and debt asset ratio; and dividend policy which was proxied by dividend payout ratio on the company value which was proxied by price-earnings ratio and price-book value. The sample of this study was 35 manufacturing companies in the period of 2013-2017 which were listed on the Indonesia Stock Exchange with 175 data observations. The analysis used was a quantitative approach with a panel data regression model with an estimated random effect model that had been fulfilled through a Hausman test and a Lagrange multiplier test. The results showed that the debt-equity ratio had a positive and significant effect on the price-earnings ratio, while the debt asset ratio and dividend payout ratio had a negative and significant effect on the price-earnings ratio. The debt-equity ratio had a positive and significant effect on the price book value, and the debt asset ratio had a negative and significant effect on the price book value, but the dividend payout ratio did not significantly influence the price book value. The conclusions of the study had provided an illustration that the capital structure and dividend policy were considered in the establishment of the firm value.

Item Type:	Article
Additional Information:	UNSPECIFIED
Uncontrolled Keywords:	financing decision, dividend policy, corporate value
Subjects:	H Social Sciences > HG Finance > HG1-9999 Finance H Social Sciences > HG Finance > HG179 Personal finance H Social Sciences > HG Finance > HG3810-4000 Foreign exchange. International finance. International monetary system H Social Sciences > HG Finance > HG4001-4285 Finance management. Business finance. Corporation finance H Social Sciences > HJ Public Finance > HJ9-9940 Public finance H Social Sciences > HJ Public Finance > HJ9103-9695 Local finance. Municipal finance Including the revenue, budget, expenditure, etc. of counties, boroughs, communes, municipalities, etc.
Divisions:	01-Faculty of Economics > 61101-Management Business and Administration (S2)
Depositing User:	Mr Kemas Muhammad Husni Thamrin
Date Deposited:	13 Sep 2021 04:27
Last Modified:	13 Sep 2021 04:27
URI:	http://repository.unsri.ac.id/id/eprint/53620

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