How Function of Financial Management to Maximizing LQ45’s Company Value Listed on the Indonesia Stock Exchange
- DOI
- 10.2991/assehr.k.211102.002How to use a DOI?
- Keywords
- capital structure; liquidity; profitability; dividend policy; company value
- Abstract
Financial management helps managers in managing company finances with various existing theories combined with the conditions and needs of the company in achieving the goals and targets set. This study aims to make people aware of the role of financial management in making important decisions, namely dividend policy which is the main target of company owners, namely the prosperity of shareholders. The research method used quantitatively uses panel data through a descriptive approach by explaining the relationship of factors that influence dividend policy decisions in 20 samples of companies listed on the LQ45 index on the Indonesia Stock Exchange for the period 2015 to 2018. The results of hypothesis testing can be explained as follows: H1: The effect of DER on ROA is Fulfilled because of the prob DER in Model A <0.05. H2: The effect of CR on DPR Fulfilled because of prob DER in Model 1 <0.05. H3: The effect of DER on Firm Value is mediated by ROA Not met, because H3.2 is not significant. It is said to mediate when both the hypotheses for H3.1 and H3.2 are significant. H4: The effect of CR on FV is mediated by DPR Fulfilled because of the prob CR in Model B (H4.1) and DPR in Model C (H4.2) <0.05. H5: The simultaneous effect of DER and CR on FV mediated by DPR Fulfilled because of the simultaneous probabilities of DER and CR in Model B (H5.1) and DPR in Model C (H5.2) <0.05. H6: The simultaneous effect of DER and CR on FV mediated by ROA is not met, because H6.2 is not significant. It is said to mediate when both the hypotheses for H6.1 and H6.2 are significant.
- Copyright
- © 2021 The Authors. Published by Atlantis Press SARL.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Dewi Nari Ratih Permada PY - 2021 DA - 2021/11/16 TI - How Function of Financial Management to Maximizing LQ45’s Company Value Listed on the Indonesia Stock Exchange BT - Proceedings of the 1st International Conference on Research in Social Sciences and Humanities (ICoRSH 2020) PB - Atlantis Press SP - 9 EP - 25 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.211102.002 DO - 10.2991/assehr.k.211102.002 ID - Permada2021 ER -