Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019)

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Financing Decision and Dividend Policy to Corporate Value

Authors
K.M. Husni Thamrin, Sulastri, Mukhlis, Abdul Bashir, Hilda Tri Lestari, Isnurhadi
Corresponding Author
K.M. Husni Thamrin
Available Online 23 May 2020.
DOI
https://doi.org/10.2991/aebmr.k.200520.039How to use a DOI?
Keywords
financing decision, dividend policy, corporate value
Abstract

This study aimed to examine the effect of capital structure which was proxied by debt equity ratio, and debt asset ratio; and dividend policy which was proxied by dividend payout ratio to 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 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 hausmant 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.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
23 May 2020
ISBN
978-94-6252-972-4
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.200520.039How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - K.M. Husni Thamrin
AU  - Sulastri
AU  - Mukhlis
AU  - Abdul Bashir
AU  - Hilda Tri Lestari
AU  - Isnurhadi
PY  - 2020
DA  - 2020/05/23
TI  - Financing Decision and Dividend Policy to Corporate Value
BT  - Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019)
PB  - Atlantis Press
SP  - 223
EP  - 229
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200520.039
DO  - https://doi.org/10.2991/aebmr.k.200520.039
ID  - Thamrin2020
ER  -