Abstract
The impact of errors in making financial decisions as a result of the opportunistic attitude of the management is the decline in profits generated by the company so that to overcome this the management will manipulate financial statements which cause a decrease in earnings quality and will distribute large dividends to attract investors. This study aims to see the impact of dividend distribution and also the quality of company earnings on the value of the company itself. Logistic regression analysis is use to analyze research data of 552 companies for 9 years using E-Views 9. The results of the analysis show that dividend policy had a significant negative effect on firm value, meaning that the less dividends distributed, the firm value will increase on the third day after the announcement of the dividend while the quality of earnings do not show any effect on firm value; growth opportunity and company age are able to weaken the negative effect of dividend policy on company value; growth opportunity is not able to moderate the effect of quality of earnings on firm value; and debt is not able to moderate both the negative effect of dividend policy and the quality of earnings. The distribution of small dividends will indicate that the company has good investments so that funds from company profits are prioritized to finance these investments. This will make the company's profit projections in the future better.
 Keywords: firm value; dividend policy; quality of earnings; agency theory
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
