Financing Decision and Dividend Policy to Corporate Value
- 10.2991/aebmr.k.200520.039How to use a DOI?
- financing decision, dividend policy, corporate value
This study aimed to examine the effect of capital structure which was proxied by debt equity ratio, and debt asset ratio; and dividend policy which was proxied by dividend payout ratio to the company value which was proxied by price earnings ratio and price book value. The sample of this study was 35 manufacturing companies in the period of 2013-2017 which listed on the Indonesia Stock Exchange with 175 data observations. The analysis used was a quantitative approach with a panel data regression model with an estimated random effect model that had been fulfilled through a hausmant test and a lagrange multiplier test. The results showed that the debt equity ratio had a positive and significant effect on the price earnings ratio, while the debt asset ratio and dividend payout ratio had a negative and significant effect on the price earnings ratio. The debt equity ratio had a positive and significant effect on the price book value, and the debt asset ratio had a negative and significant effect on the price book value, but the dividend payout ratio did not significantly influence the price book value. The conclusions of the study had provided an illustration that the capital structure and dividend policy were considered in the establishment of the firm value.
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - K.M. Husni Thamrin AU - Sulastri AU - Mukhlis AU - Abdul Bashir AU - Hilda Tri Lestari AU - Isnurhadi PY - 2020 DA - 2020/05/23 TI - Financing Decision and Dividend Policy to Corporate Value BT - Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019) PB - Atlantis Press SP - 223 EP - 229 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200520.039 DO - 10.2991/aebmr.k.200520.039 ID - Thamrin2020 ER -