Open AccessThe Effects of Leverage, Investment Decision, Dividend Policy and Profitability, on Firm Value of the Automotive Sector Companies
Author(s) -
Heri Ispriyahadi,
Grace Aprilia Uli Putri
Publication year - 2021
Publication title -
jaaf (journal of applied accounting and finance)
Language(s) - English
Resource type - Journals
eISSN - 2615-8051
pISSN - 2580-1791
DOI - 10.33021/jaaf.v5i2.1168
Subject(s) - profitability index , leverage (statistics) , dividend policy , stock exchange , enterprise value , panel data , business , automotive industry , dividend , investment decisions , market value added , nonprobability sampling , monetary economics , investment (military) , finance , econometrics , financial economics , economics , statistics , population , demography , mathematics , behavioral economics , sociology , politics , law , political science , engineering , aerospace engineering
This paper examined the impact of leverage, investment decision, dividend policy and profitability on the firm value of the automotive sector companies from 2010 - 2016. There are 12 firms chosen using a purposive sampling technique implementing specific criteria. Those firms are publicly listed on the Indonesia Stock Exchange. Panel data regression (Pooled OLS, Fixed Effects, and Random Effects) is used in this research. The results have shown that leverage, dividend policy and profitability, have a positive and significant impact on firms' value. A rise in these factors will lead to an increasing stock price, whereas even though has has a positive impact, but investment decision not a substantial effect on company value.