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Factors That Affect Firm Value Moderated by Profitability

Author

Listed:
  • Arista Andiani

    (Department of Business and Economics, Universitas Islam Indonesia)

  • Dwipraptono Agus Harjito

    (Department of Business and Economics, Universitas Islam Indonesia)

Abstract

This study aims to determine the effect growth opportunity, capital structure, and dividend policy on firm value with profitability as a moderating variable. The population in this study were all companies listed on the Indeks Saham Syariah Indonesia during the 2014-2018 period, as many as 191 companies. Sampling was done by purposive sampling method. The sample in this study was manufacturing companies that had published financial statements during the 2014-2018 period. The data collection method was data documentation technique which is historical data in the form of financial reports and annual reports. Data analysis techniques used panel regression analysis techniques. The results of this study indicate that growth opportunity and capital structure had a significant positive effect on firm value. While the dividend policy had a significant negative effect on firm value. Other results showed that profitability can strengthen the influence of growth opportunity and dividend policy on firm value but can weaken the influence of capital structure on firm value.

Suggested Citation

  • Arista Andiani & Dwipraptono Agus Harjito, 2020. "Factors That Affect Firm Value Moderated by Profitability," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(7), pages 163-170, July.
    • Handle: RePEc:bjc:journl:v:7:y:2020:i:7:p:163-170
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    References listed on IDEAS

    as
    1. Akram Budagaga, 2017. "Dividend Payment and its Impact on the Value of Firms Listed on Istanbul Stock Exchange: A Residual Income Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 370-376.
    2. Vo, Xuan Vinh & Ellis, Craig, 2017. "An empirical investigation of capital structure and firm value in Vietnam," Finance Research Letters, Elsevier, vol. 22(C), pages 90-94.
    3. Benavides, Julian & Berggrun, Luis & Perafan, Hector, 2016. "Dividend payout policies: Evidence from Latin America," Finance Research Letters, Elsevier, vol. 17(C), pages 197-210.
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