Abstract
The purpose of this research is to determine the effect of profitability, dividend policy, debt policy, and company age on company value with company size as a control variable. A population of this research is non-bank financial companies listed in Indonesia Stock Exchange (IDX) between 2014-2016. The sampling method that used is purposive sampling method and obtained 38 companies. The independent variable is Return On Equity (ROE) as a measure of profitability, Dividend Payout Ratio (DPR) as a measure of dividend policy, Debt to equity ratio (DER) as a measure of debt policy, and firm age. The dependent variable is Tobins Q as a measure of company value. The control variable is an ln total asset as a measure of firm size. This study uses secondary data that obtained from a financial statement that available on Indonesia Stock Exchange. The results showed that Profitability (ROE), and Debt Policy (DER) have no significant effect, dividend policy has a positive significant effect, and Company age has a negative significant effect on firm value. Meanwhile, the control variable (firm size) have no significant effect on firm value.
Highlights
In the last few years, non-bank financial industry believed to experience continuous growth
The purpose of the company in general is to get the best profit. There is another purpose of the company, which is to maximize the prosperity of shareholders through maximizing corporate value (Sartono, 2010)
Firm age is one of the things that are considered by the prospective investors where they must gather the funds, and firm age shows the company’s ability to exist and able to compete in the world of business (Suryamis and Oetomo 2014)
Summary
In the last few years, non-bank financial industry believed to experience continuous growth. The growth can be seen from the increase in the price of shares in several companies and the increased amount of go-public company which has joined the non-bank financial industry. If the company is able to increase profitability from one period to the period it could become the image that the company has a good performance so that investors could become interested to invest and it will aslo increase the share price and in relation with the increasing corporate value. Firm age is one of the things that are considered by the prospective investors where they must gather the funds, and firm age shows the company’s ability to exist and able to compete in the world of business (Suryamis and Oetomo 2014). The firms which have long lifespan generally have more stable profitability compared to the new firms
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