THE EFFECT OF FINANCIAL PERFORMANCE ON COMPANY VALUE WITH DIVIDEND POLICY AS A MODERATION VARIABLE: CASE OF COMPANIES RECORDED IN THE JAKARTA ISLAMIC INDEX

  • Eka Puji Rachayu Universitas Islam Indonesia
Keywords: Liquidity, Leverage, Profitability, Firm Value, Dividend Policy, Panel Data.

Abstract

Firm value is the shareholder perception of the company’s level of success, which is often associated with stock prices. Increasing the desire to achieve the company, because with the higher value of the company, the welfare of the company owners and shareholders will increase. This study aims to determine and analyze the effect of liquidity, leverage, and profitability simultaneously and partially on firm value with dividend policy as a moderating variable. This research was conducted on Jakarta Islamic index companies listed on the Indonesia Stock Exchange for the period 2017-2021. The population in this study amounted to 30 companies. The sample selection used a purposive sampling technique and obtained a sample of 13 companies with 5 years of observation in order to obtain 65 research data. The method of testing the hypothesis in this study uses a panel data regression model with the Random Effect Model approach and for testing the moderated variables using the Moderated Regression Analysis (MRA) model. The data analysis of the two models uses the Eviews program version 12. The results show that 1) liquidity has a positive and insignificant effect on firm value, 2) leverage has a negative and insignificant effect on firm value, 3) profitability has a positive and significant effect on firm value, 4) dividend policy is unable to moderate (weaken) the effect of liquidity on firm value, 5) dividend policy is unable to moderate (weaken) the effect of leverage on firm value, and 6) dividend policy is able to moderate (strengthen) the effect of profitability on firm value.

Published
2023-07-24
How to Cite
Rachayu, E. P. (2023). THE EFFECT OF FINANCIAL PERFORMANCE ON COMPANY VALUE WITH DIVIDEND POLICY AS A MODERATION VARIABLE: CASE OF COMPANIES RECORDED IN THE JAKARTA ISLAMIC INDEX. JURNAL CAFETARIA, 4(2). https://doi.org/10.51742/akuntansi.v4i2.1042
Section
JURNAL CAFETARIA JULY 2023