The Influence of Profitability, Leverage And Free Cash Flow on Firm Value With Dividend Policy as A Moderation Variable (Empirical Study of Consumption Goods Industry Sector Companies on The IDX Period 2019–2021)

Yolanda Dwi Ferdiansah (), Fetri Setyo Liyundira and Ratna Wijayanti Daniar Paramita
Additional contact information
Yolanda Dwi Ferdiansah: Institut Teknologi Dan Bisnis Widya, Departemen of Accounting
Fetri Setyo Liyundira: Institut Teknologi Dan Bisnis Widya, Departemen of Accounting
Ratna Wijayanti Daniar Paramita: Institut Teknologi Dan Bisnis Widya, Departemen of Accounting

A chapter in Proceedings of the Conference on SDGs Transformation Through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023), 2023, pp 68-74 from Springer

Abstract: Abstract This study investigates the impact of profitability, leverage, and free cash flow on firm value, with a focus on consumer goods manufacturing companies listed on the Indonesian Stock Exchange from 2019 to 2021. It employs a quantitative descriptive approach, using purposive sampling to select 32 companies. Data analysis utilizes multiple linear regression to assess these relationships and moderated regression analysis (MRA) to explore dividend policy as a moderator. Key findings include the positive influence of profitability and free cash flow on firm value, while leverage negatively affects it. Dividend policy reinforces the positive impact of profitability on firm value and intensifies the negative effect of leverage. However, it does not moderate the relationship between free cash flow and firm value. Approximately 89.3% of firm value is explained by the variables studied, leaving 10.7% influenced by other unexamined factors. These findings enhance our understanding of firm value dynamics in the consumer goods manufacturing sector on the Indonesian Stock Exchange during the specified period.

Keywords: dividend policy; firm value; free cash flow; leverage; profitability (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-346-7_14

Ordering information: This item can be ordered from
http://www.springer.com/9789464633467

DOI: 10.2991/978-94-6463-346-7_14

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().