Open AccessFinancial distress, growth opportunities, and dividend policy on firm value through company hedging policies
Author(s) -
I. Putu Sudarma,
Maria Mediatrix Ratna Sari
Publication year - 2020
Publication title -
international journal of management, it and social sciences
Language(s) - English
Resource type - Journals
ISSN - 2395-7492
DOI - 10.21744/irjmis.v8n1.1054
Subject(s) - dividend policy , stock exchange , enterprise value , nonprobability sampling , dividend , financial distress , business , real estate , value (mathematics) , sample (material) , real estate investment trust , financial economics , economics , monetary economics , finance , financial system , population , chemistry , demography , chromatography , machine learning , sociology , computer science
This study aims to obtain empirical evidence of the effect of financial distress, growth opportunities, and dividend policies on firm value through company hedging policies. This research was conducted on property and real estate companies listed on the Indonesian stock exchange in 2016-2018. The sampling technique used purposive sampling, with several criteria, to get a sample size of 55 companies. The data analysis technique used is path analysis. Hypothesis testing shows that financial distress has a positive effect on hedging, while growth opportunities and dividend policy have no significant effect on hedging. Financial distress hurts firm value. Growth opportunities and dividend policy have a positive effect on firm value. This study also found that hedging has no significant effect on firm value. Also, this study is unable to prove the company's hedging policy as a mediating variable.