Open AccessEffect of Debt to Equity Ratio and Profitability on Company Value with Dividend Policy as a Moderating Variable in Consumer Industry Companies Listed on the Indonesia Stock Exchange 2015-2018
Author(s) -
Jesselin Chandra,
Nagian Toni,
Galumbang Hutagalung
Publication year - 2021
Publication title -
international journal of research and review
Language(s) - English
Resource type - Journals
eISSN - 2454-2237
pISSN - 2349-9788
DOI - 10.52403/ijrr.20210813
Subject(s) - dividend policy , debt to equity ratio , profitability index , stock exchange , equity value , equity ratio , business , enterprise value , debt ratio , dividend payout ratio , return on equity , dividend , economics , finance , monetary economics , debt , nonprobability sampling , population , external debt , debt levels and flows , demography , sociology
This study aims to determine the effect of debt to equity ratio and profitability on company value with dividend policy as a moderating variable in Consumer Industry Companies listed on the Indonesia Stock Exchange 2015-2018. The population in this study is a Consumer Industry Companies. The sampling technique used was purposive sampling, in order to obtain 17 companies with 4 years of observation to 68 observations. The data analysis tool uses SmartPLS 3.0. The results of the analysis show that the debt to equity ratio has a positive and significant effect on company value, profitability has no effect on company value, dividend policy is able to moderate the effect of debt to equity ratio and profitability on company value and dividend policy is not able to moderate the effect of profitability on company value. Debt to equity ratio and profitability can explain the value of the company value by 62.7% while the remaining 37.3% is explained by other variables. Suggestions for company value to be able to pay attention and regulate as well as possible the level of utilization of the profits obtained and the determination of dividends to be distributed to investors in making decisions related to increasing company value.Keywords: Debt to Equity Ratio, Profitability, Company Value, Dividend Policy.