The Influence of Dividend Policy, Debt Policy, and Profitability on the Firm Value of Banking Companies Listed on the Indonesia Stock Exchange in the Period of 2019-2022.
Sarah Aulia Rahim1, Maya Sari2, Imas Purnamasari3

Universitas Pendidikan Indonesia

Abstract

This research aims to investigate the influence of dividend policy, debt policy, and profitability on the firm value of banking companies listed on the Indonesia Stock Exchange in the period of 2019-2022. The research object consists of 12 banking companies listed on the Indonesia Stock Exchange. The analysis method employed is multiple linear regression with tests for normality, heteroscedasticity, autocorrelation, and t-test. The findings indicate that dividend policy has a significant positive effect on firm value, whereas debt policy does not have a significant effect. Additionally, profitability has a significant positive influence on firm value. In conclusion, dividend policy and profitability play significant roles in determining the firm value of banking companies.

Keywords: Dividend policy, Debt policy, Profitability, The value of the company

Topic: Financial Management and Accounting