The Influence of Growth Potential, Capital Structure and Profitability on Dividend Policy and Firm Value in Manufacturing Companies Listed on the Indonesia Stock Exchange

Abstract

Purpose: Potential company growth has an optimistic and important impact on dividend policy, the Capital structure has a negative and important impact on dividend policy, Profitability has an optimistic and important impact on dividend policy. Theoretical framework: The value of the company is strongminded only by the investment decision. Outsiders cannot directly monitor investment decisions. The Investment Opportunity Set (iOS) delivers a complete indication of where the corporation's worth depends on the company's spending in the future. Method: In this research two methods are used, that is, descriptive and explanatory methods. Company growth has a negative and unimportant impact on firm value, the Capital structure has an optimistic and important influence on firm value, Profitability has an optimistic and important impact on firm value, Dividend policy has an optimistic and important impact on firm value. Results and conclusions: Profitability has a bad and important influence on firm value through dividend policy, the Capital structure has an optimistic and important impact on firm value through dividend policy and Potential company growth has an optimistic impact and important to firm value through dividend policy. Research implications: The people is manufacturing companies registered on the Indonesia Stock Exchange, 193 companies, a research example of 122 companies, 2019-2020 period. Originality/value: The sampling process is purposive sample. Structural Equation Modeling (SEM) analysis technique.