THE EFFECT OF FINANCIAL PERFORMANCE, COMPANY GROWTH, AND INSTITUTIONAL OWNERSHIP ON FIRM VALUE WITH DIVIDEND POLICY AS A MODERATING VARIABLE

Abstract

The manufacturing industry is an industry that contributes significantly as the main driver of economic growth in Indonesia, which is a developing country, so it is an attractive investment option for investors. Investors generally make an assessment using financial ratios to determine the value of the company to be invested in. Various factors can affect the value of the company. This study aims to determine the effect of financial performance (as measured by liquidity, leverage, and profitability ratios), company growth and institutional ownership on firm value with dividend policy as a moderating variable. This quantitative study uses a sample of 44 manufacturing companies on the Indonesia Stock Exchange in the 2017-2021 period, which were determined by purposive sampling. The analysis method used in this research is Moderated Regression Analysis. The results showed that financial performance, company growth and institutional ownership positively affect firm value. A dividend policy can moderate the effect of financial performance, company growth and institutional ownership on firm value.

Keywords

• firm value
• liquidity
• leverage
• profitability
• company growth
• institutional ownership
• dividend policy