The Influence of Company Growth, Profitability, and Free Cash Flow on Company Value with Dividend Policy as Moderating Variable (An Empirical Study on Manufacturing Companies Listed on the Indonesia Stock Exchange from 2018-2020)

Abstract

This research aims to analyze the influence of a company’s growth, profitability, and free cash flow on the company’s value and the role of dividend policy in moderating this relationship. The research population is 159 manufacturing companies listed on the Indonesia Stock Exchange from 2018-2020. The sample is selected using a purposive sampling technique. There are 44 companies as the sample with 132 units of analysis. The data analysis uses Moderated Regression Analysis (MRA) supported by Eviews 9 tool. The results show that growth and profitability influence the company’s value, while free cash flow does not affect the value. A dividend policy can weakly moderate the relationship between a company’s growth and value, but it cannot moderate profitability and free cash flow to the company’s value.
 Keywords: free cash flow, dividend policy, company value; company growth; profitability