FACTORS AFFECTING COMPANY VALUE WITH DIVIDEND POLICY AS MODERATION VARIABLES

Abstract

Abstract

The investment world is currently in an era that is unstable, uncertain, complex and ambiguous or can be called VUCA. This acronym was first used in the US Army, in the late 1980s to define conditions faced by military leaders in the war Whiteman, (1998). This is known by the unstable capital market in recent years. The purpose of this research is to examine the factors that affect firm value with dividend policy as a moderating variable. The research sample used companies listed on the IDX's LQ45 index for the 2016-2020 period. The analysis used in this study was descriptive statistical tests, classical assumption tests, multiple linear regression analysis, model fit tests, and hypothesis testing. Based on the results of the research that has been done, it shows that profitability and institutional ownership have a significant positive effect on firm value. However, liquidity, leverage & dividend policy have no effect on firm value. The dividend policy is able to significantly moderate the influence of profitability on firm value. However, dividend policy is unable to moderate liquidity, leverage and institutional ownership in the LQ45 index for the 2016-2020 period. This research contributes to investors as a consideration in making investment decisions.

Keywords:  Firm Value, Dividend Policy