Determinants of Firm Value with Dividend Policy as The Moderating Variable

Abstract

This research aims to investigate how profitability, capital 
structure, and firm size affect firm value. It also seeks to 
ascertain whether dividend policy can moderate the 
influence of profitability, capital structure, and firm size on 
firm value. The observational data in this study amounts to 
340, obtained from 68 companies in the consumer non
cyclical sector listed on the Indonesia Stock Exchange (IDX) 
during the 2018-2022 period. The data were sourced from 
the companies' financial statements published on the 
website https://www.idx.co.id.  This study employs the 
Moderated Regression Analysis (MRA) model. The results 
indicate that profitability and capital structure have a 
positive but not significant impact, while firm size has a 
significantly negative impact on firm value. The interaction of 
profitability, capital structure, and firm size with dividend 
policy is significantly positive, meaning that dividend policy 
strengthens the influence of profitability, capital structure, 
and firm size on firm value. The implication of these findings 
is that dividend policy can be used as a reference in 
formulating company policies to enhance firm value.