Firm's Value Prediction Based on Profitability Ratios and Dividend Policy

Finance & Economics Review

View Publication Info
 
 
Field Value
 
Title Firm's Value Prediction Based on Profitability Ratios and Dividend Policy
 
Creator Husain, T.
Sarwani
Sunardi, Nardi
Lisdawati
 
Subject Firm's Value; Profitability Ratios; Dividend Policy; Indonesia
 
Description Purpose: This study aims to empirically prove the research framework regarding the Firm’s Value based on Profitability Ratios associated with Dividend Policy. The firm's Value is measured using a Price-to-Book Value (PBV) Approach.
Methods: This study included a sample of 11 firms under the automotive and components sib sector listed in the Indonesia Stock Exchange. It included data for the period of 2014-2018. This study applied path analysis using the Sobel test of the direct and indirect effects using IBM SPSS 23.0.
Results: The study finds that Profitability Ratios has no significant effect on the Dividend Policy, while the Dividend Policy has no significant effect on Firm's Value too. However, the Dividend Policy does not mediate the effect of Profitability Ratios on the Firm's Value.
Implications: This study could be extended further by considering all listed firms of IDX which may provide us more insights into the measurement of the financial ratios in the context of Indonesia.
 
Publisher Research & Innovation Initiative
 
Date 2020-06-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://riiopenjournals.com/index.php/finance-economics-review/article/view/102
10.38157/finance-economics-review.v2i2.102
 
Source Finance & Economics Review; Vol 2 No 2 (2020): Finance & Economics Review; 13-26
2690-4063
10.38157/finance-economics-review.v2i2
 
Language eng
 
Relation https://riiopenjournals.com/index.php/finance-economics-review/article/view/102/53
 
Rights Copyright (c) 2020 T. Husain, Sarwani, Nardi Sunardi, Lisdawati
http://creativecommons.org/licenses/by-nc-nd/4.0
 

Contact Us

The PKP Index is an initiative of the Public Knowledge Project.

For PKP Publishing Services please use the PKP|PS contact form.

For support with PKP software we encourage users to consult our wiki for documentation and search our support forums.

For any other correspondence feel free to contact us using the PKP contact form.

Find Us

Twitter

Copyright © 2015-2018 Simon Fraser University Library