The Effect of Profitability, Financing and Investment Decisions, Dividend Policy, Foreign Ownership, and Firm Size on Firm Value
DOI:
https://doi.org/10.55927/ijems.v4i2.40Keywords:
Profitability, Financing Decisions, Investment Decisions, Dividend Policy, Foreign OwnershipAbstract
The research will analyze the effect of profitability, financial structure, investment decision-making, dividends, foreign ownership, and firm size on business valuation. The analysis will be conducted on businesses operating in the real estate sector that are listed in IDX over the period of 2013 to 2022. The study employed a sample of 41 companies selected using a purposive sampling technique. Data analysis was conducted using E-Views 12, applying a panel data regression approach. According to the findings from the above analysis, the profitability, funding decision, foreign ownership, and size of firms have a highly significant positive impact on firm value, whereas investment decision has a highly significant negative impact on firm value, and there is no impact of dividend policy on firm value
References
Ahmad, G. N., Lullah, R., & Siregar, M. E. (2020). The Effect of Investment Decisions, Funding Decisions, Dividend Policy, and Board of Commissioners Size on Firm Value in Manufacturing Companies Listed on the Indonesia Stock Exchange for the 2016-2018 Period. Journal of Indonesian Science Management Research (JRMSI), 11(1), 169–184.
Amaliya, F. C. (2018). The Effect of Managerial Ownership, Institutional Ownership, and Foreign Ownership on Firm Value. University of Muhammadiyah Malang.
Amaliyah, F., & Herwiyanti, E. (2020). The Effect of Investment Decisions, Company Size, Funding Decisions and Dividend Policy on the Value of Mining Sector Companies. Journal of Economic and Business Research,5 (1), 39-51. https://doi.org/10.33633/jpeb.v5i1.2783
Anisha, D., Putri, I., Utara, U. S., Saham, R., Insitusi, J., & Ganesha, P. (2021). Market Value Added (MVA) On Stock Return Market Value Added (MVA). Journal of Ganesha Polytechnic Institute Medan, 4, 267–275.
Arifin, A. M., Hermunigsih, S., & Maulida, A. (2022). The effect of profitability, liquidity, and debt on equity (der) on firm value in manufacturing companies in the consumer goods industry sector listed on the Indonesia stock exchange in 2015-2019. Innovation,18 (1), 217-225. https://doi.org/10.30872/jinv.v18i1.10419
Arizki, A., Masdupi, E., & Zulvia, Y. (2019). The Effect of Investment Decisions, Funding Decisions and Dividend Policy on Firm Value in Manufacturing Companies. Journal of Management and Entrepreneurial Studies, 01, 73–82.
Atmaja, S. (2020). Factors Affecting Firm Value in the Agriculture Sector on the Indonesia Stock Exchange in 2015-2019. Journal of Management and Business, 1–17.
Dewi, V. S., & Ekadjaja, A. (2020). The Effect of Profitability, Liquidity, and Company Size on Firm Value in Manufacturing Companies. Journal of Multiparadigm Accounting, 2(1), 118–126.
Fama, E. F., & French, K. R. (2015). A five-factor asset pricing model. Journal of Financial Economics, 116(1), 1–22.
Ghozali, I. (2018). Multivariate analysis applications with the IBM SPSS 25 program. Diponegoro University.
Ghozali, I., & Ratmono, D. (2018). Multivariate Analysis and Econometrics Theory, concepts and Applications with Eviews 10 (2nd Edition). Publishing Agency of the Faculty of Economics and Business, Diponegoro University.
Gujarati, D. N., & Porter, D. C. (2009). No Title (N. Fox (ed.); 5th editio). Douglas Reiner.
Hanafi, M. M. (2018). Financial Management (Second Edition). BPFE-Yogyakarta.
Hasanah, A. N., & Lekok, W. (2019). Factors Affecting Company Value: Dividend Policy as a Mediator. Journal of Business and Accounting,21 (2), 165-178. https://doi.org/10.34208/jba.v21i2.617
Husna, A., & Satria, I. (2019). Effects of Return on Asset, Debt To Asset Ratio, Current Ratio, Firm Size, and Dividend Payout Ratio on Firm Value. International Journal of Economics and Financial Issues,9 (5), 50-54. https://doi.org/10.32479/ijefi.8595
Indrarini, S. (2019). Company Value Through Earnings Quality. Scopindo Media Pustaka.
Jayanti, E. D., Wulandari, A., & Kompyurini, N. (2021). The Effect of Corporate Risk Management Disclosure, Intellectual Capital Disclosure, and Foreign Ownership on Firm Value. InFestasi, 17(2), 168–180.
Cashmere. (2019). Financial Statement Analysis (Pert Edition). PT Raja Grafindo Persada.
Khorida, S., Wijayanti, A., & Dewi, R. R. (2022). The effect of capital structure, dividend policy, profitability, and corporate governance mechanisms on firm value. Innovation,18 (2), 377-384. https://doi.org/10.30872/jinv.v18i2.10620
Kusna, I., & Setijani, E. (2018). Analysis of the Effect of Financial Performance, Growth Opportunity and Company Size on Capital Structure. Journal of Business Management and Entrepreneurship, 6(1), 93–102.
Laksono, B. S., & Rahayu, Y. (2021). The Effect of Profitability, Investment Decisions, and Company Size on Firm Value. Journal of Accounting Science and Research, 10(1), 1–17.
Laveda, M., & Khoirudin, R. (2020). Analysis of the value of companies in the consumer goods sector for the 2015-2019 period. INOVASI Journal, 16(2), 223–232.
Lestari, K. ayu, Titisari, K. H., & Suhendro. (2021). Analysis of firm value in terms of profitability, liquidity, capital structure, dividend policy and managerial ownership. Journal of Management, 17(2), 248–255.
Maimunah, S., & Hilal, S. (2018). The Effect of Investment Decisions, Funding Decisions, Dividend Policy and Interest Rates on Firm Value. JIMFE (Scientific Journal of Management Faculty of Economics),6 (2), 42-49. https://doi.org/10.34203/jimfe.v6i2.467
Michael, H. R. (2019). The Effect Of Financial Ratio On Company Value With Inflation As A Moderation Variable. Journal of Accounting,23 (1), 33. https://doi.org/10.24912/ja.v23i1.458
Miller, M. H., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. The Journal of Business, 34(4), 411–433.
Mubyarto, N., & Khairiyani. (2019). Investment, Funding, and Dividend Policies as Determinants of Firm Value. Journal of Multiparadigm Accounting,10 (2), 328-341. https://doi.org/10.18202/jamal.2019.08.10019
Mukaria, H. K., Mwangi, M., Ochieng, D. E., & Okiro, K. (2020). Mediating Effect of Agency Cost on the Relationship between Ownership Structure and Firm Value. Journal of Finance and Investment Analysis, 9(3), 37–50.
Nur'aini, S. F., Dewi, R. R., & Astungkara, A. (2022). Factors determining firm value in the consumer goods industry. Innovation,18 (2), 350-359. https://doi.org/10.30872/jinv.v18i2.10618
Purwitasari, D. (2018). The Effect of Profitability, Investment Decisions, Funding Decisions, and Dividend Policy on the Value of Manufacturing Companies listed on the Indonesia Stock Exchange. Thesis Publication. Management Study Program, Faculty of Economics, Yogyakarta State University., 1–115.
Rafi, M. I., Nopiyanti, A., & Mashuri, A. A. S. (2021). The effect of financial performance, dividend policy and investment decisions on firm value. Journal of Correlation. National Research Conference on Economics, Management, and Accounting, 2, 270–284.
Ramadhan, J. A., & Rahayuningsih, D. A. (2019). Factors Affecting Firm Value in Non-Financial Companies in Indonesia. Journal of Business and Accounting, 21(1), 153–162.
Ramdhonah, Z., Solikin, I., & Sari, M. (2019). The Effect of Capital Structure, Company Size, Company Growth, and Profitability on Company Value (Empirical Study of Mining Sector Companies Listed on the Indonesia Stock Exchange in 2011-2017). 7(1), 67-82. https://doi.org/10.17509/jrak.v7i1.15117
Rochmah, Y., & Titisari, K. H. (2022). The role of good corporate governance moderates the relationship between corporate social responsibility, leverage, and profitability on health firm value. Innovation,18 (2), 414-424. https://doi.org/10.30872/jinv.v18i2.10587
Sa'diyah, C. (2021). Relationship Between Profitability, Investment Decisions On Firm Value: A Study Of Listed Banks In Indonesia. JBMP (Journal of Business, Management and Banking),7 (2), 69-88. https://doi.org/10.21070/jbmp.v7i2.1469
Sakdiah. (2019). The Effect of Profitability, Leverage, Company Size and Liquidity on Dividend Policy and Company Value. Journal of the Department of Tadri IPS Society, 10(2), 133–153.
Santoso, B. H., & Meidha, R. (2017). The effect of investment decisions, funding, and dividend policy on firm value. Journal of Management Science and Research,6 (November), 1-20.
Sari, A. R., Hermuningsih, S., & Maulida, A. (2022). interest rates (BI Rate) on firm value in manufacturing companies on the IDX in 2016-2020 The effect of investment decisions, funding decisions, profitability, and interest rates (BI Rate) on firm value in manufacturing companies on the IDX. Journal of Management Economics and Accounting, 24(1), 1–12.
Sari, N. R., & Wahidahwati. (2018). The Effect of Investment Decisions, Funding Decisions, Dividend Policy on Firm Value with GCG as a Moderating Variable Wahidahwati Indonesian College of Economics (STIESIA) Surabaya. Journal of Accounting Science and Research, 7(6), 2–25.
Septiana, A. (2019). Financial Statement Analysis: Basic Concepts and Description of Financial Statements. Duta Media Publishing.
Setyani, A. Y. (2022). The Effect of Debt Policy, Dividend Policy, and Profitability on Company Value. Insight: Journal of Management Science, Economics and Entrepreneurship,1 (1), 15-24. https://doi.org/10.58192/wawasan.v1i1.339
Silaswara, D., Ginny, P. L., Hanapi, F., & Parameswari, R. (2018). The effect of foreign ownership, company size, and leverage on firm value in non-financial companies listed on the Indonesian stock exchange for the period 2015-2017. Akuntoteknologi: Scientific Journal of Accounting and Technology, 10(2), 1–10.
Sintyana, I. P. H., & Artini, L. G. S. (2018). The Effect of Profitability, Capital Structure, Company Size and Dividend Policy on Firm Value. E-Journal of Management, Udayana University,8 (2), 757. https://doi.org/10.24843/ejmunud.2019.v08.i02.p07
Somantri, I., & Sukardi, H. A. (2018). The Effect of Investment Decisions, Debt Policy, and Dividend Policy on Firm Value (pp. 1-10).
Steven, & Suparmun, H. (2019). Factors Affecting the Value of Non-Financial Companies Listed on the Indonesia Stock Exchange. Journal of Business and Accounting,20 (2), 117-126. https://doi.org/10.34208/jba.v20i2.416
Sugiyono. (2019). Qualitative and R&D quantitative research methods (Pert Edition). Alfabeta.
Suhardi, H. (2021). The Effect of Leverage, Profitability, and Company Size on the Value of Basic Industry and Chemical Sector Manufacturing Companies Listed on the IDX. Journal of Business Management and Entrepreneurship,5 (1), 77. https://doi.org/10.24912/jmbk.v5i1.10834
Suidarma, I. M., Satyawati, K. O., Dwipayana, I. P. D., & Yasa, I. N. A. (2022). Volume. 18 Issue 3 (2022) Pages 561-568 INOVASI: Journal of Economics, Finance and Management ISSN: 0216-7786 (Print) 2528-1097 (Online) The effect of financial inclusion with fintech integration on financial stability in Indonesia The effect of financial i. INOVASI, 18(3), 591–601.
Surjandari, D. A., Anggraeni, D., Arlita, D. P., & Purba, R. M. (2019). Analysis of Non-Financial Determinants of Company Value in Manufacturing Companies in Indonesia. Journal of Accounting,23 (2), 230. https://doi.org/10.24912/ja.v23i2.584
Tambunan, E. H., Sabijono, H., & Lambey, R. (2019). The Effect of Investment Decisions and Debt Policy on Company Value in Construction Companies in Bei. Journal of Economic Research, Management, Business and Accounting, 7(3), 4445–4454.
Utami, A. P. S., & Darmayanti, N. P. A. (2019). The Effect of Investment Decisions, Funding Decisions and Dividend Policy on Firm Value. Sriwijaya Journal of Management and Business,16 (3), 164-176. https://doi.org/10.29259/jmbs.v16i3.7380
Wardoyo, D. U., Kusumaningtyas, A. W., Dhiya Rifdah Afifah, & Galih Pangestu, F. I. (2022). The Effect of Intangible Asset and Foreign Ownership on Firm Value in Infrastructure Sector Companies Listed on the Indonesia Stock Exchange for the 2018-2020 Period. Juremi: Journal of Economic Research,2 (1), 25-30. https://doi.org/10.53625/juremi.v2i1.2389
Widyastuti, D. R., Wijayanti, A., & Masitoh W, E. (2022). The effect of managerial ownership, profitability, leverage and firm size on firm value. Innovation,18 (2), 294-304. https://doi.org/10.30872/jinv.v18i2.10617
