Effect of Dividend Policy and Capital Structure on Firm Value with Growth Opportunity as a Moderating Variables

Abstract

Objective: Main objective this research is to examine and analyze the effect of dividend policy and capital structure on firm value with growth opportunity as a moderating variable.
 Methodology: Quantitative techniques are used in this study. A purposive sampling of 54 samples based on preset criteria was conducted on the trading and service organizations that will be listed on the Indonesian Stock Exchange in 2019–2021 as the population for this study. Dividend Policy and Capital Structure, which are independent factors, Firm Value, a dependent variable, and Growth Opportunity, a moderating variable, are the variables that were looked at in this study. The research data was subjected to analysis using the SmartPLS 3 software application, which served as the analytical tool.
 Results: The results of the research show that dividend policy which is proxied dividend payout ratio (DPR) has a significance impact on firm value, capital structure which is proxied debt to equity ratio (DER) has a significant impact on firm value, growth opportunity which is proxied earning per share (EPS) has a significance impact on firm value, dividend policy has a significance impact on firm value with growth opportunity as a moderating variable and dividend policy has not impact on firm value with growth opportunity as a moderating variable. The results of the research overall study have consequences for businesses in the trade and service sectors that are listed on the IDX, requiring them to conduct evaluations or plan in order to optimize corporate value for the benefit of shareholders.
 Implication: Implications will be impact all parties based on the results of this research among companies listed on the IDX will make planning and evaluation, especially the trade and service sector to take precautions so that the company's value remains stable and normal. For potential investors, it will be an opportunity and opportunity to choose to invest in the right company to achieve maximum profit, high company value is indeed an attraction for investors but good growth is also a support in seeing how far a company can increase its firm value supported by a high capital structure also has good implications for the company's development.