IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-346-7_14.html

The Influence of Profitability, Leverage And Free Cash Flow on Firm Value With Dividend Policy as A Moderation Variable (Empirical Study of Consumption Goods Industry Sector Companies on The IDX Period 2019–2021)

In: Proceedings of the Conference on SDGs Transformation Through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)

Author

Listed:
  • Yolanda Dwi Ferdiansah

    (Institut Teknologi Dan Bisnis Widya, Departemen of Accounting)

  • Fetri Setyo Liyundira

    (Institut Teknologi Dan Bisnis Widya, Departemen of Accounting)

  • Ratna Wijayanti Daniar Paramita

    (Institut Teknologi Dan Bisnis Widya, Departemen of Accounting)

Abstract

This study investigates the impact of profitability, leverage, and free cash flow on firm value, with a focus on consumer goods manufacturing companies listed on the Indonesian Stock Exchange from 2019 to 2021. It employs a quantitative descriptive approach, using purposive sampling to select 32 companies. Data analysis utilizes multiple linear regression to assess these relationships and moderated regression analysis (MRA) to explore dividend policy as a moderator. Key findings include the positive influence of profitability and free cash flow on firm value, while leverage negatively affects it. Dividend policy reinforces the positive impact of profitability on firm value and intensifies the negative effect of leverage. However, it does not moderate the relationship between free cash flow and firm value. Approximately 89.3% of firm value is explained by the variables studied, leaving 10.7% influenced by other unexamined factors. These findings enhance our understanding of firm value dynamics in the consumer goods manufacturing sector on the Indonesian Stock Exchange during the specified period.

Suggested Citation

  • Yolanda Dwi Ferdiansah & Fetri Setyo Liyundira & Ratna Wijayanti Daniar Paramita, 2023. "The Influence of Profitability, Leverage And Free Cash Flow on Firm Value With Dividend Policy as A Moderation Variable (Empirical Study of Consumption Goods Industry Sector Companies on The IDX Period 2019–2021)," Advances in Economics, Business and Management Research, in: Imam Abrori & Indrian Supheni & Muhammad Mudhofar & Wahyuning Murniati & Nico Irawan & Arfan Ikhsan (ed.), Proceedings of the Conference on SDGs Transformation Through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023), pages 68-74, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-346-7_14
    DOI: 10.2991/978-94-6463-346-7_14
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-346-7_14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.