Abstract
The objective this research is to examine financing policy, dividend policy and profitability of the firm association investment opportunity set. The sample of this study consist of 28 firm in Jakarta Stock Exchange period 1999-2004. Common factor analysis is conducted to constructcomposite measures then ranked to classify the growth of sampling firm. To examine the impact of the financing policy, dividend policy, and profitability to the investment opportunity set of the high and low growth firm is used logit regression analysis. The result indicates that the impact between financing policy, proxied by Book value of debt to equity, Market value of debt to equity to investment opportunity set, is significantly negative. The impact between dividend policy proxied by dividend yield and investment opportunity set is significantly negative, but dividen pay out ratio is not significant. The impact of profitability, proxied by return on assets to investment opportunity set is significantly positive.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.