Analysis of Firm Value in Non-Financial Sector Companies Listed on Indonesia Stock Exchange
Imas Purnamasari, Iqbal Lhutfi, Fitrina Kurniati, Rika Mardiani

Universitas Pendidikan Indonesia

Abstract

This research aims to determine the effect of dividend policy, capital structure, and profitability on firm value in non-financial sector companies listed on Indonesia Stock Exchange in 2002-2018. Dividend policy was measured by Dividend Payout Ratio (DPR), the capital structure was measured by Debt to Equity Ratio (DER), Profitability was measured by Return and Equity ratio (ROE), and firm value was measured by Price to Book Value (PBV). This research applied descriptive and verificative methods, and employed documentation method to gather the data. This research used secondary data from the official website of Indonesia Stock Exchange in the form of financial reports and annual reports from 2002-2018. This research employed 120 samples from 1913 companies, using the purposive sampling method from 17 years of observation. This research hypothesis testing was conducted by using the panel data multiple regression method. Dividend policy and capital structure had a positive impact, while profitability had a negative impact on firm value in non-financial sector companies listed on the Indonesia Stock Exchange in 2002-2018.

Keywords: Dividend Policy, Capital Structure, Profitability, Firm Value, IDX

Topic: Financial Management and Accounting