Proceedings of the International Colloquium on Business and Economics (ICBE 2022)

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Capital Structure, Profitability, and Firm Value: Does Firm’s Dividend Policy Matter? Evidence from Telecommunication Industry

Authors
Fauji Sanusi1, Nurani Fuspawita1, Yeni Januarsi2, *
1Management Department, Faculty of Economics and Business, University of Sultan Ageng Tirtayasa, Serang, Indonesia
2Accounting Department, Faculty of Economics and Business, University of Sultan Ageng Tirtayasa, Serang, Indonesia
*Corresponding author. Email: yeni_januarsi@untirta.ac.id
Corresponding Author
Yeni Januarsi
Available Online 26 December 2022.
DOI
10.2991/978-94-6463-066-4_10How to use a DOI?
Keywords
Firm Value; Capital Structure; Profitability; Dividend Policy
Abstract

Using dividend policy as a moderating variable, the purpose of this study is to examine the factors that determine the value of a firm, focusing on the capital structure and profitability of the telecommunications industry listed on the IDX from 2016 to 2020. The findings of this study show that capital structure and profitability have a positive and statistically significant impact on the value of a company. However, our hypothesis which suggests that dividend policy moderates the link between capital structure and company value cannot be supported. In contrast, we document that dividend policy can influence the link between profitability and business value, with favorable and statistically significant outcome. This study implies that telecommunication industry does not consider dividend policy as material factor to boost the company value with any form of capital structure chosen by the firms.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 December 2022
ISBN
10.2991/978-94-6463-066-4_10
ISSN
2352-5428
DOI
10.2991/978-94-6463-066-4_10How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Fauji Sanusi
AU  - Nurani Fuspawita
AU  - Yeni Januarsi
PY  - 2022
DA  - 2022/12/26
TI  - Capital Structure, Profitability, and Firm Value: Does Firm’s Dividend Policy Matter? Evidence from Telecommunication Industry
BT  - Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
PB  - Atlantis Press
SP  - 87
EP  - 97
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-066-4_10
DO  - 10.2991/978-94-6463-066-4_10
ID  - Sanusi2022
ER  -