Dividend Policy as Moderation Variable

Oct 13, 2025 by windailys.com 135 views

Analysis of the Effect of Company Size, Profitability, Capital Structure, and Risk Profile on Company Value with Dividend Policy as Moderation in the 2013-2022 Indonesia Stock Exchange Banking Company

The Indonesia Stock Exchange (IDX) is one of the largest stock exchanges in Southeast Asia, with a significant number of listed companies, including banking companies. The banking sector plays a crucial role in the Indonesian economy, and the value of these companies is a critical factor in determining their success. Company value is a multifaceted concept that is influenced by various factors, including company size, profitability, capital structure, and risk profile. This study aims to analyze the effect of these factors on company value, with dividend policies as moderation variables, in the context of banking companies listed on the IDX during the 2013 to 2022 period.

Previous studies have investigated the relationship between company size, profitability, capital structure, and risk profile on company value. However, the role of dividend policies as a moderation variable has not been extensively explored. Dividend policy refers to the company's decision to distribute a portion of its earnings to shareholders in the form of dividends. This policy can have a significant impact on investor perceptions and company value.

This study uses a panel data regression analysis approach to examine the effect of company size, profitability, capital structure, and risk profile on company value, with dividend policies as moderation variables. The data used in this study were taken from information available on the IDX, with purposive sampling techniques. Of the 49 registered banking companies, 11 companies were selected as samples, with a total of 110 observations. Hypothesis testing is carried out using the e-views application.

The results of this study show that profitability and capital structure have a positive and significant influence on company value. This indicates that the higher the profitability and capital structure owned by the company, the higher the company's value in the eyes of investors. Conversely, company size and risk profile do not show a significant effect on the company's value. This can be interpreted that although the size of the company is large, does not guarantee an increase in company value if the profitability and capital structure are low.

Dividend Policy as Moderation Variable

Dividend policy plays an important role in strengthening the effect of capital structure on company value. This shows that companies that have a good capital structure and provide a stable dividend can increase investor confidence, so that it has the potential to increase company value. However, dividend policy can also weaken the effect of risk profile on company value. This shows that investors pay more attention to dividend policies in the risk context faced by the company.

The conclusion that can be drawn from this study is that to increase company value, especially in the banking sector, management needs to pay attention to profitability and capital structure seriously. Dividend policy must also be well considered, because it can have a positive impact on investor perceptions. Thus, companies can formulate more appropriate strategies to attract investors and increase company value in the market.

Through an understanding of the relationship between these variables, it is hoped that banking companies in Indonesia can be better in making strategic decisions that are not only beneficial for the company, but also provide added value for stakeholders. This study contributes to the existing literature by providing insights into the role of dividend policies as a moderation variable in the context of banking companies listed on the IDX.

This study has several limitations. Firstly, the sample size is relatively small, which may limit the generalizability of the findings. Secondly, the study only focuses on banking companies listed on the IDX, which may not be representative of all companies in the Indonesian economy. Finally, the study only examines the effect of company size, profitability, capital structure, and risk profile on company value, without considering other factors that may influence company value.

Future research can build on this study by examining the effect of other factors on company value, such as corporate governance, management quality, and industry characteristics. Additionally, researchers can investigate the impact of dividend policies on company value in other industries or countries. By exploring these research directions, we can gain a deeper understanding of the complex relationships between company value and various factors that influence it.

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[Additional materials or data that support the findings of the study]
Frequently Asked Questions (FAQs) on the Analysis of the Effect of Company Size, Profitability, Capital Structure, and Risk Profile on Company Value with Dividend Policy as Moderation in the 2013-2022 Indonesia Stock Exchange Banking Company

Q: What is the main objective of this study? A: The main objective of this study is to analyze the effect of company size, profitability, capital structure, and risk profile on company value, with dividend policies as moderation variables, in the context of banking companies listed on the Indonesia Stock Exchange (IDX) during the 2013 to 2022 period.

Q: What are the key findings of this study? A: The key findings of this study are that profitability and capital structure have a positive and significant influence on company value, while company size and risk profile do not show a significant effect on company value. Additionally, dividend policy plays an important role in strengthening the effect of capital structure on company value.

Q: What is the significance of this study? A: This study contributes to the existing literature by providing insights into the role of dividend policies as a moderation variable in the context of banking companies listed on the IDX. The findings of this study can help banking companies in Indonesia to make strategic decisions that are not only beneficial for the company, but also provide added value for stakeholders.

Q: What are the limitations of this study? A: The limitations of this study include a relatively small sample size, which may limit the generalizability of the findings. Additionally, the study only focuses on banking companies listed on the IDX, which may not be representative of all companies in the Indonesian economy.

Q: What are the implications of this study? A: The implications of this study are that banking companies in Indonesia need to pay attention to profitability and capital structure seriously, and dividend policy must also be well considered, because it can have a positive impact on investor perceptions.

Q: What are the future research directions based on this study? A: Future research can build on this study by examining the effect of other factors on company value, such as corporate governance, management quality, and industry characteristics. Additionally, researchers can investigate the impact of dividend policies on company value in other industries or countries.

Q: What are the practical implications of this study for banking companies in Indonesia? A: The practical implications of this study for banking companies in Indonesia are that they need to formulate more appropriate strategies to attract investors and increase company value in the market. This can be achieved by paying attention to profitability and capital structure, and by considering dividend policy as a key factor in investor perceptions.

Q: What are the potential applications of this study? A: The potential applications of this study are in the fields of finance, accounting, and business, where researchers and practitioners can use the findings of this study to inform their decisions and strategies.

Q: What are the potential limitations of applying the findings of this study? A: The potential limitations of applying the findings of this study are that the study only focuses on banking companies listed on the IDX, and the sample size is relatively small. Additionally, the study only examines the effect of company size, profitability, capital structure, and risk profile on company value, without considering other factors that may influence company value.

Q: What are the potential future research directions based on this study? A: The potential future research directions based on this study are to examine the effect of other factors on company value, such as corporate governance, management quality, and industry characteristics. Additionally, researchers can investigate the impact of dividend policies on company value in other industries or countries.