The Influence of Dividend Policy, Financing Decisions, and Free Cash Flow on Firm Value in Indonesia


 
 
 This research is conducted to find out the effect of investment opportunity set and free cash flow towards dividend policy and its impacts on firm value of manufacturing companies registered in Indonesia Stock Exchange during the period of 2011-2013. The samples of this study are 25 manufacturing companies and they were selected by using purposive sampling method. The data is collected through non participants’ observation. Path analysis which is an extension of the multiple linear regression technique is used to analyze data. Based on the data analysis, it was found that, investment opportunity set has positive effects on dividend policy. It refuses the negative hypothesis, free cash flow has positive effects on dividend policy, investment opportunity set has positive effects on firm value, free cash flow has positive effects on firm value, dividend policy has positive effects on firm value, investment opportunity set has effects on firm value through dividend policy and free cash flow has no effects on firm value through dividend policy.
 
 
 

This study is aimed to determine the moderating effect of Dividend Policy on Free Cash Flow and Profitability towards Firm Value. This study use Moderate Regression Analysis (MRA) as tool to analyze the moderating effect of Dividend Policy on the sample tested. Sample are chosen by using purposive sampling method from all manufacture firms that listed on Indonesian Stock Exchange throughout 2010-2015 which offered cash dividend to their shareholders. By using panel data, the findings show that Free Cash Flow and Profitability themselves have significant effect on Firm Value. But conversely, each Free Cash Flow and Profitability does not have significant effect on Firm Value after being moderated by Dividend Policy. It is because the direct effect of Free Cash Flow and Profitability toward Firm value is bigger than the indirect effect. The results indicate that Dividend Policy is just predictor moderation in this case.Keywords:Dividend Policy, Free Cash Flow, Profitability, Firm Value, Manufacture, MRA

ARTICLE INFO ABSTRACT Keywords:Dividend Policy, Free Cash Flow, Profitability, Firm Value, Manufacture, MRA How to cite:Oktaryani, Sri., (2018). Article Title. JMM UNRAMDOI:10.20956/jmm.v3i2.821 This study is aimed to determine the moderating effect of Dividend Policy on Free Cash Flow and Profitability towards Firm Value. This study use Moderate Regression Analysis (MRA) as tool to analyze the moderating effect of Dividend Policy on the sample tested. Sample are chosen by using purposive sampling method from all manufacture firms that listed on Indonesian Stock Exchange throughout 2010-2015 which offered cash dividend to their shareholders. By using panel data, the findings show that Free Cash Flow and Profitability themselves have significant effect on Firm Value. But conversely, each Free Cash Flow and Profitability does not have significant effect on Firm Value after being moderated by Dividend Policy. It is because the direct effect of Free Cash Flow and Profitability toward Firm value is bigger than the indirect effect. The results indicate that Dividend Policy is just predictor moderation in this case.

This study is aimed to determine the moderating effect of Dividend Policy on Free Cash Flow and Profitability towards Firm Value. This study use Moderate Regression Analysis (MRA) as tool to analyze the moderating effect of Dividend Policy on the sample tested. Sample are chosen by using purposive sampling method from all manufacture firms that listed on Indonesian Stock Exchange throughout 2010-2015 which offered cash dividend to their shareholders. By using panel data, the findings show that Free Cash Flow and Profitability themselves have significant effect on Firm Value. But conversely, each Free Cash Flow and Profitability does not have significant effect on Firm Value after being moderated by Dividend Policy. It is because the direct effect of Free Cash Flow and Profitability toward Firm value is bigger than the indirect effect. The results indicate that Dividend Policy is just predictor moderation in this case.Dividend Policy, Free Cash Flow, Profitability, Firm Value, Manufacture, MRA

This study aims to determine the effect of leverage and free cash flow on dividend policy on LQ45 index companies listed in Indonesia Stock Exchange 2012-2016. The population used in this study is the LQ45 index company listed on the Indonesia Stock Exchange 2012-2016. Method of sampling by purposive sampling according to predetermined criteria. The number of samples collected were 11 companies. Research data is secondary data obtained from Indonesia stock exchange (IDX) year 2012-2016. The collected data is analyzed by using data analysis which is done by classical assumption test before doing hypothesis testing. Hypothesis testing in this study using multiple linear regression analysis with t test, f test, and coefficient of determination. The results of this study indicate that leverage variables have a negative and significant effect on dividend policy. This suggests that leverage can affect the high dividend policy. While free cash flow has a positive and insignificant effect on dividend policy. This shows that free cash flow does not affect the high dividend policy.Keywords: leverage, free cash flow, dividend

This research aims to find empirical evidence about the influence of profitability on firm value. To find empirical evidence about the influence of capital structure on firm value. To find empirical evidence about the influence of dividend policy on firm value. To know more about the influence of empirical evidence Investment Decision on firm value. To know more about the influence of empirical evidence profitability, capital structure, dividend policy and investment decisions simultaneously on firm value.
 
 Variables of this research are Profitability, Capital Structure, Dividend Policy, Investment Decisions and firm value. The type of data research is secondary data, it is manufacturing company's financial statements the period of 2010 - 2014. The analysis technique used is multiple linear regression with a significance level of 5%.
 
 The research results show that profitability have a positive and significant effect on firm value. Capital structure does not affect the firm value. Dividend policy is positive and significant effect on firm value. Investment policy and significant positive effect on firm value. Simultaneously profitability, capital structure, dividend policy and investment decisions are have significant effect on firm value. The effect of profitability, capital structure, dividend policy, and investment decisions to firm value by 37.5% while the rest influenced by other factors not included in the research model.
 
 Keywords: Profitability, Capital Structure, Dividend Policy, Investment Decisions and Firm Value

Limited liability company agency issues in Indonesia make for an exciting study topic from both the corporate law and corporate finance perspectives, giving rise to an agency issue, or conflict of interest. Determining the impact of managerial ownership, leverage, and dividend policy on free cash flow and firm value in the Manufacturing Industry listed on the Indonesia Stock Exchange from 2014 to 2020 is the goal of the study. 33 sample companies and 198 data samples total are used in this purposive sampling study. The data is balanced panel data that was analyzed using a stepwise regression approach. The results showed that managerial ownership had a significant negative effect on firm value, leverage did not affect firm value, dividend policy had a significant positive effect on firm value, and free cash flow had a significant positive effect on firm value. managerial ownership does not affect free cash flow, leverage has a significant positive effect on free cash flow, and dividend policy has a significant negative effect on free cash flow. This study implies that managers tend to be opportunistic so institutional ownership interference in the manufacturing industry in Indonesia is still high. High dividend payments will give a positive signal that will have an impact on increasing stock prices.

This study examines the effect of funding decisions, investment decisions, dividend policies, and free cash flow on firm value. The samples used in this study are consumer goods industry companies listed on the Indonesia Stock Exchange (IDX) during 2016-2019. Based on purposive sampling, the selected sample is 34 companies, so that the total sample is 136 observations. Hypothesis testing is carried out using multiple linear regression analysis of panel data. The test results show that funding decisions positively affect firm value, while investment decisions do not affect firm value. This study also shows that dividend policy and free cash flow have a negative effect on firm value.

A company is established to raise the value of the firm by maximizing profit and shareholder’s wealth. In the capital market, firm value is reflected in the stock price. To raise a firm value, needed to investigate the determinant of firm value. So, this research is aimed to determine the effect of free cash flow on firm value with dividend payout and investment opportunity set as mediator. Population in this research was companies listed on the Main Board Stock Index in Indonesian Stock Exchange for 2013-2017. The sample is 189 observation and it was taken by using purposive sampling technique. Data analysis technique used in this research is path analysis and Sobel test. This research founded that free cash flow has a positive significant effect on firm value and dividend payout, free cash flow has a negative effect on investment opportunity set, dividend payout has a positive significant effect on firm value, and investment opportunity set has a positive significant effect on firm value. Furthermore, dividend payout act as a mediator on the effect of free cash flow on firm value, but investment opportunity unable to mediate the effect of free cash flow on firm value.

This study aims to examine and analyze the effect of profitability, company size, leverage, liquidity, and free cash flow on dividend policy in the health sector of companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period. This study uses signaling theory as the basis of the research. The type of data used is secondary data in the form of the company's annual financial report. The sampling technique used in this study was purposive sampling method based on certain criteria. The data analysis technique that was used in this study is multiple linear regression. The research results show that: (1) Profitability has no effect on dividend policy. (2) Firm size has a positive effect on dividend policy. (3) Leverage has no effect on dividend policy. (4) Liquidity has no effect on dividend policy. (5) Free cash flow has no effect on dividend policy. The implication in this study is that company size will affect dividend policy. This research proves that the larger the size of the company, the greater the company's dividend payout policy. Meanwhile, profitability, leverage, liquidity and free cash flow have not been able to influence the company's dividend policy.

This study entitled The Effect of Financial Instrument Asset and Free Cash Flow on Firm Value. The purpose of this study was to determine whether financial instrument assets and free cash flow have an effect on firm value. This research is a descriptive quantitative study, using statistical tests and literary methods. The research companies listed on the Indonesia Stock Exchange in 2017-2021. The sample was selected using purposive sampling method and obtained 19 companies that became the sample. The type of data used is secondary data, in the form of company annual reports. Data analysis used descriptive statistics, classic assumption test, coefficient of determination and multiple linear regression analysis. Data processing uses the SPSS program to perform multiple linear regression analysis, coefficient of determination, normality test, multicollinearity test, autocorrelation test and hypothesis testing. The results of this study indicate that financial instrument assets have no effect on firm value, free cash flow has a significant effect on firm value.

This study aims to determine whether there is an effect of free cash flow and leverage (debt equity ratio) on stock prices through dividend payout ratios at the Kompas 100 Index non-banking companies listed on the Indonesia Stock Exchange in 2019. Free cash flow used free cash flow calculated. Leverage used debt to equity ratio (DER), Dividend policy used dividend payout ratio (DPR) based on profit for year 2019 and stock price used closing price in 2020. The data analysis technique used in this research is regression analysis, path analysis, and Sobel test, multiple correlation test, coefficient of determination test, t test, and f test. Data analysis used IBM SPSS Statistics 26. The results: (1) free cash flow had a significant positive effect on dividend policy. (2) leverage has a significant negative effect on dividend policy. (3) free cash flow has a direct and not significant positive effect on stock prices. (4) leverage has a direct and insignificant negative effect on stock prices, (5) dividend policy has a significant positive effect on stock prices. (6) dividend policy is able to mediate free cash flow on stock prices positively and not significantly. (7) dividend policy is not able to mediate the effect of leverage on stock prices

Firm value playsimportant role in maximizing shareholder profits at a time of rising share prices. Risingcompany share price will improve shareholders' welfare. Firm value is important to investors becauseit is an indicator of the market in measuring the company as a whole. The purpose of the research is toanalyze the influence of free cash flow and profitability on firm value by mediated by dividend policy. This research is based on several theories including Agency Theory, Signaling Theory, Agency CostTheory, Firm Value, Profitability, Free Cash Flow, and Dividend Policy. The object of research s amanufacturing company listed on the Indonesia Stock Exchange in the period 2015-2017 with 60companies as the sample. Analysis techniques used by Structural Equation Modelling (SEM). Theresults of the research include (1), there is a positive and significant influence of free cash flow on firmvalue (2) there is a positive and significant influence of profitability on firm value, (3) there is a positifveand significant influence of free cash flow on dividend policy, (4) there is no influence of profitabilityon dividend policy, (5) there is a positive and significant influence of dividend policy on firm value, (6)dividend policy can’t mediate the effect of profitability on firm value, and (7) dividend policy canmediate the influence of free cash flow on firm value.Keywords : Profitability, Free Cash Flow, Dividend Policy, dan Firm Value

The objective of this research is to examine the mediation effect of investment efficiency (ROA) and the moderation effect of Syariah in the relationship of free cash flow on firm value (Tobin q). Research population involved all manufacturing companies at Indonesia Stock Exchange on period 2012-2018. Purposive sampling was used as sampling technique and the obtained sample was 36 companies with total observation of 252. Hypothesis test was conducted with PLS-SEM analysis technique supported by software WarpPLS 5.0. Type of data was data panel with observation period from 2012 to 2018. Several empirical results were obtained. First, free cash flow has positive and significant effect on firm value. Second, free cash flow has positive and significant effect on investment efficiency. Third, investment efficiency has positive and significant effect on firm value. Fourth, Syariah does not have moderation effect in the relationship of free cash flow on firm value. Last, investment efficiency mediates partially the effect of free cash flow on firm value. From these results, several conclusions were made. Firm value can be indirectly affected through intervening variable. Mediation role played by investment efficiency informs that investment efficiency proxied by ROA can alleviate the contradictive results of empirical studies (research gap) concerning the effect of free cash flow on firm value.

This study aims to identify the effect of managerial ownership , institutional ownership , free cash flow , and profitability on the dividend policy in the manufacturing companies go public listed on the Indonesia Stock Exchange 2010-2013 . The hypothesis was first put forward in a negative effect of managerial ownership on the dividend policy , the second hypothesis is the positive effect of institutional ownership on the dividend policy , the third hypothesis is the positive effect of free cash flow on the dividend policy , the fourth hypothesis is the positive effect of profitability on the dividend policy . Measurement of the dividend policy is based on the dividend payout ratio is seen in the company's annual financial statements . The sample in this study is that the manufacturing companies go public listed on the Indonesia Stock Exchange 2010-2013 . Sampling using purposive sampling in order to obtain a total sample of 14 manufacturing companies go public that meet the criteria of the study sample set. Managerial ownership is measured by dividing the number of shares owned by management with a total number of outstanding shares , institutional ownership is measured by dividing the number of shares owned by institutions with a total number of outstanding shares , free cash flow is measured by dividing free cash flow with total assets , profitability is measured by Return on Assets ( ROA ) . The technique of data analysis done with the classical assumption , hypothesis testing using multiple linear regression analysis using SPSS 18.0 for windows . The results showed that in partial institutional ownership , free cash flow , profitability has positive influence on the dividend policy in the manufacturing companies go public listed on the Indonesia Stock Exchange , while the variable managerial ownership negatively affects the dividend policy in the manufacturing companies go public listed on the Indonesia Stock Exchange.