Effect of Investment Decisions, Financing Decisions and Dividend Policy on Profitability and Value of The Firm | Zendy

Sitti Murniati | Zendy

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Effect of Investment Decisions, Financing Decisions and Dividend Policy on Profitability and Value of The Firm

Author(s) -

Sitti Murniati

Publication year - 2022

Publication title -

international journal of accounting and finance in asia pasific

Language(s) - English

Resource type - Journals

eISSN - 2684-9763

pISSN - 2655-6502

DOI - 10.32535/ijafap.v2i1.359

Subject(s) - profitability index , dividend policy , enterprise value , investment decisions , nonprobability sampling , investment (military) , dividend , finance , business , value (mathematics) , sample (material) , welfare , internal financing , economics , information asymmetry , market economy , population , chemistry , demography , behavioral economics , chromatography , machine learning , sociology , politics , political science , computer science , law

The purpose of this study is to analyze the effect of investment decisions, financing decisions and dividend policies both directly and indirectly on value of the firm mediated by profitability. The sample technique was purposive sampling by pooling data. Data were analyzed by Structural Equation Modeling. The results showed that investment decisions and financing decisions have a positive and significant effect on profitability and value of the firm so that the main objective of the company is to maximize the welfare of company owners by increasing value of the firm through increased profitability, while dividend policy has a negative and not significant effect on profitability and value of the firm directly and indirectly. Keywords: Investment Decisions, Financing Decisions, Dividend Policies, Profitability and Value of the Firm

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