Dividend Policy Decisions Research Articles

Peran Profitabilitas dalam Memediasi Kebijakan Dividen: Studi Kasus pada Jakarta Islamic Indeks 70

This study stems from the phenomenon of investment shifting from the real sector to financial Practice with expectations of obtaining returns in the form of dividend policies. The research examines the impact of Leverage, liquidity and profitability as intermediate variables in dividend policy, for issuers listed in the Jakarta Islamic Index (JII 70). Using several purposive sampling criteria, 25 issuers were selected as research samples. Leverage describes the company's ability to settle obligations with debt; companies with high leverage tend to retain earnings rather than distribute dividends. Liquidity reflects the company's ability to meet short-term obligations; liquid issuers tend to distribute dividends. Profitability, measured through Return on Equity (ROE), is expected to mediate the relationship between leverage and liquidity with dividend policy. According to the Trade-Off Theory, the balance between the use of debt and current assets positively impacts profitability, increasing the likelihood of dividend distribution. The research results show that leverage and liquidity have an adverse impact on dividend policy, with liquidity having a beneficial effect but not contributing to profitability, while leverage negatively affects profitability. Profitability does not significantly mediate the relationship between leverage and liquidity with dividend policy. These findings are important for investors and management in understanding the factors impacting dividend policy decisions in the Sharia capital market.

The influence of cost of debt, cost of equity and weighted average cost of capital on dividend policy decision: evidence from non-financial companies listed on the Frankfurt Stock Exchange

Non-financial companies listed on the Frankfurt Stock Exchange face considerable difficulties due to expensive funding and the need to make complex decisions about their capital structure. These problems impact their judgments about dividend policy, resulting in ambiguity and possible inefficiency. This study draws on the bird-in-hand theory to investigate the influence of the cost of capital on dividend policy decisions among non-financial firms listed on the Frankfurt Stock Exchange, focusing on 227 companies from 2005 to 2022. The data for this study were sourced from Thomson Reuters Datastream. Employing the common shock autoregressive distributed lag (CS-ARDL) and two-step generalized method of moments (GMM) estimations, findings reveal that the cost of debt consistently negatively impacts dividend payouts and coverage ratios. In contrast, the cost of equity has an insignificant effect. Conversely, the weighted average cost of capital positively influences dividend payouts and coverage ratios but negatively influences dividend yield. All the findings supported the bird-in-hand theory except for the negative impact of WACC on dividend yield. These insights highlight the importance of considering the cost of capital and market share dynamics in dividend policy formulation. Firms should prioritize efficient debt management to sustain dividend distributions, and aligning dividend policies with overall capital structure management is crucial in this regard, providing a sense of reassurance and confidence to the firms and their stakeholders. This study provides valuable guidance for financial decision-makers navigating dividend-related strategies within corporate environments.

The Impact of Debt Policy, Dividend Policy, and Investment Decisions on Value Creation (Study of Coal Mining Companies listed on the IDX for the 2018-2022 Period)

The aim of this reseacrh is to identify and analyze the combined impact of debt policy, dividend policy, and investment decisions on value creation, the influence of debt policy on value development, and the influence of dividend policy on value creation. The study also aims to investigate the influence of investment choices on value generation. We conducted this study at coal mining businesses listed on the IDX between 2018 and 2022. This study had a sample size of seven coal mining companies. The preliminary findings indicate that debt management has a significant and favorable influence on value generation. Similarly, the policy regarding dividends also has a positive and significant impact on value creation. Furthermore, investment decisions have a positive and significant impact on value creation for coal mining firms listed on the IDX between 2018 and 2022.

The Influence of Institutional Ownership on Firm Value with Dividend Policy and Investment Decisions as Intervening Variables (a Study on Consumer Goods Companies on the Indonesia Stock Exchange)

Performance is measured by company valuation to attract investors. This study examines the effects of institutional ownership on firm value in three ways: 1) directly, 2) indirectly with dividend policy as an intervening variable, and 3) indirectly with investment decisions as an intervening variable. From 279 consumer goods manufacturing companies listed on the Indonesia Stock Exchange until 2023, 52 were selected via purposive sampling. Using the Sobel Test, it was found that: 1) Institutional Ownership positively and significantly impacts Firm Value, 2) Dividend Policy does not mediate the effect of Institutional Ownership on Firm Value, and 3) Investment Decisions do mediate the effect of Institutional Ownership on Firm Value

Dividend Policy Decisions and Share Price Volatility of Deposit Money Banks in Nigeria

Dividend Policy Decisions and Share Price Volatility of Deposit Money Banks in Nigeria

PENGARUH INSTITUTIONAL OWNERSHIP, PROFITABILITY DAN FAKTOR LAINNYA TERHADAP FIRM VALUE

The aim of this research is to determine whether there is an influence of dividend policy, institutional ownership, funding policy, investment decisions, profitability, liquidity, and activity ratio as independent variables on firm value as a dependent variable in cyclical and non-cyclical consumer sector companies listed in Indonesia stock exchange. This research uses consumer cyclical and non-cyclical sector companies listed on the Indonesia Stock Exchange for the period 2020 to 2022 and uses a purposive sampling method by determining seven sample criteria to obtain a sample of 37 companies and a total of 111 data. The data analysis method used in this research is multiple linear regression. The results of this research show that the profitability and activity ratio variables have a positive effect on firm value. The liquidity variable has a negative effect on firm value. Meanwhile, the dividend policy, institutional ownership, funding policy and investment decision variables have no effect on firm value.

Factors Affecting Firm Value: Empirical Research on Non-Cyclicals Consumer Firms

This study aimed to examine the relationship between Corporate Governance proxied by Independent Commissioner and Audit Committee, Dividend Policy (DPR), and Investment Decision (PER) on Firm Value (PBV) with Financial Performance (ROA) as mediating variable. The sampling technique used was purposive sampling technique which obtained 102 observations of Consumer Non-Cyclicals companies during 2018-2022. The data analysis technique used in this study was multiple linear regression analysis. The research results showed that Dividend Policy has a positive effect on Financial Performance. On the contrary, this research showed that Independent Commissioners and Investment Decisions can reduce financial performance. The research results also showed that the Audit Committee, Dividend Policy, Investment Decisions, and Financial Performance have positive effect on firm value. However, Independent Commissioners has no effect on firm value. The results of the sobel test showed that Dividend Policy can improve the company's Financial Performance, so it can improve firm value of consumer non-cyclical companies.

Do Funding Decisions, Dividend Policy, and Investment Decisions effect on Islamic Firm's Value?

This research aims to examine the influence of Funding Decisions, Dividend Policy and Investment Decisions on Company Value in Companies listed on the Jakarta Islamic Index (JII) for the 2017-2020 period. This research uses quantitative research with a descriptive research strategy. The population of this research is 30 companies listed on the JII for the 2017-2020 period. The sample selection in this study used purposive sampling with a total sample of 22 companies, so the number of observations was 88. The data used is secondary data. Data collection techniques through the company's official website. The research results prove that Funding Decisions have a significant positive effect on Company Value, Dividend Policy has a significant and negative effect on Company Value, and Investment Decisions have a significant and positive effect on Company Value. The managerial implication in this research is that the capital structure chosen can influence the company's cost of capital. Dividend decisions can also affect a company's share price. It is important to conduct careful analysis and consider the various factors that influence these decisions to ensure that the company operates efficiently and can increase value for shareholders

Dividend policy in indonesia: evidence from manufacturing companies

This research attempts to identify the factors affecting dividend policy decision. The independent variables of this research are corporate governance (proxied by audit quality and board independence), investment opportunities, collateralizable assets, and company life cycle. Also previous years dividend and profitability as control variables. The population of this research is manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2018-2022. The sample was selected using purposive sampling methods and 62 sample companies that met the criterias were obtained. The data was analyzed using logistic regression analysis technique. This findings of this research confirm that company life cycle has a positive and significant effect on dividend policy. As companies reach the maturity stage, the propensity to pay dividends increases. Meanwhile, corporate governance, investment opportunities, and collateralizable assets do not affect dividend policy of manufacturing companies. Furthermore, the control variables previous years dividend and profitability have a positive and significant effect on dividend policy of manufacturing companies.

Sustainability Environmental Performance Future Investment for Company Value

This study investigates the financial dynamics of 182 manufacturing companies listed on the Indonesia Stock Exchange during the period 2019 to 2022, amid the COVID-19 pandemic. This study uses a quantitative approach using SPSS for regression analysis. The dataset covers the turbulent years of the COVID-19 pandemic, providing insights into the resilience and adaptability of companies during this period. This study reveals that while capital structure and dividend policy do not significantly affect firm value, firm growth, profitability and investment decisions exert a differential influence. Notably, environmental performance moderates the impact of growth and profitability on firm value, but does not significantly affect relationships involving capital structure, dividend policy, or investment decisions. This research contributes to the growing landscape of financial analysis by incorporating environmental considerations as a moderating factor. It underscores the importance of sustainable practices in improving financial performance and firm value, especially in the context of global crises such as the COVID-19 pandemic.

THE INFLUENCE OF CAPITAL STRUCTURE, COMPANY GROWTH, DIVIDEND POLICY, SALES GROWTH, AND INVESTMENT DECISIONS ON COMPANY VALUE IN PHARMACEUTICAL SUB-SECTOR COMPANIES LISTED ON THE IDX FOR THE 2018-2022 PERIOD

This study aims to analyze the effect of capital structure, company growth, dividend policy, sales growth, and investment decisions on company value in pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX). This research was conducted for five consecutive years from 2018 to 2022 which included 8 company samples taken using a purposive sampling technique. The data analysis used is multiple regression analysis method. The results of this study indicate that partially capital structure, company growth, and investment decisions affect firm value. Sales growth and dividend policy have no effect on firm value. Simultaneously capital structure, company growth, dividend policy, sales growth, and investment decisions have a significant effect on firm value.

Pengaruh Kebijakan Dividen, Profitabilitas dan Keputusan Investasi terhadap Nilai Perusahaan pada Perusahaan Sektor Pertambangan yang Terdaftar di Bursa Efek Indonesia (BEI)

This research aims to determine the impact of dividend policies, profitability, and investment decisions on the value of companies in the mining sector listed on the Indonesian Stock Exchange. This research uses quantitative data with a secondary data source obtained from the Indonesian Stock Exchange financial reports. Sampling in this study used purposive sampling techniques and obtained 10 companies as samples for research. The analysis technique used is linear regression analysis using SPSS 2.7. The results of the research show that Dividend Policy (DPR) and Investment Decisions (FATA) have no effect on the Company’s Value (PER), while rentability (ROA) has a significant negative impact on the company’s value. (PER).

Corporate tax policy, Shariah compliance and financial decisions: evidence from Malaysia

PurposeThis study investigates the influence of corporate income tax on two corporate financial decisions — dividend and capital structure policies, particularly for Shariah compliant companies in Malaysia.Design/methodology/approachThe study considered data from a sample of 529 Malaysian listed companies from four industrial sectors from 2007–2021 (6,746 company-year observations, before eliminating outliers). Panel models such as Fixed Effect and Random effect models were used. The study specifically tested the effect of corporate income tax on dividend and capital structure policies for Shariah compliant companies (3,148 observations) and controlled for industrial sectors.Findings(1) Firms are mostly Shariah-compliant, less liquid, less profitable and smaller in size, (2) Broadly when analysed together, tax has no impact on debt-equity ratio while it has an impact on dividend per share, (3) However, when tested separately for Shariah compliant companies, the influence of effective tax on capital structure is very evident but not for dividend and (4) influence of industrial sector on the relationship between corporate tax and capital structure and dividend policy is significant. Results indicate that Shariah firms might be raising debt to gain tax advantage. Companies in general pay dividends to avoid reputational damage.Research limitations/implicationsThis study assumes that leverage and dividend policy decisions are the main outcomes of the changing tax policies, while it seems that there could be other important outcomes that can be tested in future research. The study also shows the changing tax regimes of different ASEAN countries but they have not been tested to see the differences between countries. It will be indeed interesting for future researchers to focus on this aspect.Originality/valueThe findings contribute to the literature on tax planning of the Shariah-compliant firms, a high growth business segment in the Asian context. The study discussed potential tax-based Islamic market product development.

ANALISIS KEBIJAKAN DIVIDEN DAN KEPUTUSAN INVESTASI TERHADAP NILAI PERUSAHAAN DENGAN GOOD CORPORATE GOVERNANCE SEBAGAI PEMODERASI (Studi Empiris Pada Perusahaan Sub Sektor Perindustrian Yang Terdaftar Di Bursa Effek Indonesia Tahun 2017-2022)

This study aims to test and obtain empirical evidence regarding the effect of dividend policy and investment decisions on firm value with good corporate governance as a moderating variable in the object of industrial sub-sector companies listed on the IDX in 2017-2022. This type of research is quantitative which is processed with the help of E-views with the moderating regression analysis (MRA) method. The results showed that the Investment Decision variable had a persial effect on Firm Value. While Dividend Policy has no effect on Company Value. Good Corporate Governance (GCG) is able to moderate the relationship of Investment Decisions on Company Value, while Good Corporate Governance is unable to moderate the relationship of Dividend Policy on Company Value.

How COVID-19 Affected Corporate Dividend Decisions: Novel Evidence from Emerging Countries

Abstract The study aims to investigate the corporate dividend policy decisions in emerging countries during the COVID-19 pandemic. Our sample consists of 5,869 publicly listed firms from 29 emerging countries to explicate the observed trends in dividend policy during the pandemic. Logistic regressions are used to investigate the main factors that drive the propensity to change dividend payouts. Our analysis reveals that most firms opted to either increase or decrease their dividends, with a minority proportion deciding to maintain dividends. Notably, our findings demonstrate that firm profitability is the main driver of all types of dividend changes, except when firms opt to maintain or decrease dividends. Moreover, we find that when firms reduce dividends by over 70%, profitability emerges as a crucial determinant, thus bolstering the signaling hypothesis. The results are robust to sample size sensitivity and different levels of dividend changes. The findings of the study might have practical implications for corporate managers and policymakers in designing dividend decisions and policies under uncertain conditions. This research underscores the impact of the COVID-19 pandemic on corporate dividend policy in emerging countries and emphasizes the need to consider the level of dividend changes in exploring the dividend puzzle.

Effect of Ownership Structure on Dividend Policy of Listed Firms at the Nairobi Securities Exchange

Ownership structure leads to agency problems since majority shareholders have high levels of incentives hence, they monitor the actions of the management and influence decisions. There has been a growing debate on whether ownership structure impacts on management decisions especially dividend policy decisions. The objective of this study was to determine the effect of ownership on dividend pay-out of listed firms at Nairobi Securities Exchange. The study employed correlation analysis and multiple regression analysis in establishing relationship between types of ownership structures and dividend pay-out. This research was anchored by agency theory and utilized a cross-sectional descriptive research design. The population comprised of 63 listed firms listed in the ten-year Period under consideration. Diagnostic tests and descriptive statistics were carried out afterwards inferential statistics: correlation analysis and regression analysis were applied in hypothesis testing. The study found that an increase in concentration of Managerial Ownership and Foreign Ownership caused an increase in dividend pay-out because cash dividends tend to be higher where the managerial and foreign ownership presence in the board of directors is higher. In addition, state ownership and institutional ownership caused a caused a decrease in dividend pay-out because the state and Institutional Owners prefer cash retention as opposed to dividend distribution in the company.

The Influence of Investment and Funding Decisions on Company Value with Intervening Variables of Dividend Policy in Companies Listed on The Jakarta Islamic Index

The purpose of this study is to analyze and apply the influence of investment decisions and funding decisions on company value in companies listed in the Jakarta Islamic Index and to analyze and apply the influence of investment decisions and funding decisions on company value with intervening variables of dividend decisions in companies listed in the Jakarta Islamic Index. The population in this study is companies listed in the Jakarta Islamic Index (JII) for the 2017-2022 period. Research samples with porpusive sampling method amounted to 7 from 30 companies. The data was analyzed using linear regression with the Eviews application. The results showed that Investment decisions and funding decisions have a positive and significant influence on Dividend Policy, Investment Decisions and Funding decisions have no and insignificant effect on company value, dividend policy Intervening investment decisions and funding decisions on company value in companies listed in JII for the 2017-2022 period

ANALISIS PENGARUH PROFITABILITAS, LIKUIDITAS, KEBIJAKAN DIVIDEN, DAN KEPUTUSAN INVESTASI TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN SEKTOR INDUSTRI FARMASI DI BURSA EFEK INDONESIA

Firm worth can be deciphered as market esteem or describes the condition and financial performance of a company, besides that company value is an indicator to be thought about by investors in making decisions. As a predictive model for company value, This research aims to ascertain how the pharmaceutical industry's IDX firm value (PBV) is affected by profitability (ROA), liquidity (CR), dividend policy (DPR), and investment decision (PER). The time period that was used for the research was five years 2017-2021. The method of research that will be Multiple Linear Regression Analysis is used in this study. with the SPSS 21 program with a 5 percent significance level. This study found that profitability has no significant impact on company value, that liquidity has no impact on company value, that dividend policy has no impact on company value, and that investment decisions have an impact on company value.

Effect of Dividend Policy on Firm Performance and Stockholders Wealth: Evidence from Listed Firms on Pakistan Stock Exchange

The study investigates the relationship between dividend policy, firm performance, and stockholders’ wealth in the context of listed firms on the Pakistan Stock Exchange. Dividend policy decisions are critical for firms as they directly affect shareholders’ wealth and provide insights into a company’s financial health and management’s confidence in prospects. The study utilizes a comprehensive dataset comprising financial information, Data collected for companies from the DataStream for the period 2010 and 2020. A sample of 100 corporations listed on the Pakistan Stock Exchange was chosen by including firms that have paid dividends for ten years in a row and have consistent payout practices. Various financial indicators such as return on equity (ROE), earnings per share (EPS), and dividend per share (DPS) and Dividend Yield (DY) are employed to measure firm performance and stockholders’ wealth. Using advanced econometric techniques, including descriptive analysis, correlation analysis and regression analysis, the study assesses the impact of dividend policy on firm performance and stockholders’ wealth. The study’s outcomes have implications for investors, managers, and policymakers in Pakistan, enabling them to make informed decisions regarding dividend distributions and their potential impact on various stakeholders. By gaining insights into the relationship between dividend policy and these key performance indicators, firms can make more informed decisions regarding dividend distributions and develop strategies to maximize stockholders’ wealth while maintaining financial stability.

The Influence of Dividend Policy, Investment Decisions and Funding Decisions on the Value of Infrastructure, Utilities & Transportation Companies Listed on the IDX for the 2019-2021 Period

The company as an economic entity has short term and long term goals, in the short term the company aims to generate maximum profits and the long term goal is to increase the value of the company. The Covid-19 pandemic in Indonesia affected the business management of a company in the infrastructure, utilities and transportation sector, which experienced a decline in company performance. Company value as measured by Price Book Value (PBV) for the infrastructure, utilities and transportation sectors has fluctuated from 2019 – 2021. Internal factors include dividend policy, investment decisions and funding decisions. To determine the effect of dividend policy, investment decisions and funding decisions on firm value is the aim of this study. This type of research is a quantitative approach. This study uses secondary data taken through the IDX data website. Sampling method used is purposive sampling. The sample used in this research is 13 companies consisting of the infrastructure, utilities and transportation sectors which are listed on the Indonesia Stock Exchange for the 2019-2021 period. The data analysis technique uses multiple linear regression analysis with the SPSS 25 program. Based on the results of the study, it shows that the dividend policy variable has no effect on firm value, investment decisions have a positive and significant effect on firm value and funding decisions have a significant negative effect on firm value.