INFLUENCE OF DIVIDEND POLICIES, MANAGERS SHARE-OWNED, BOARD SIZE AND PROFITABILITY TOWARD COMPANY’S VALUE ON MANUFACTURING COMPANY IN INDONESIAN STOCK EXCHANGE
Suparno1 -Djoko Pitoyo2
This study aims to analyze and provide empirical evidence that the independent variable Dividend Policy, Manager Share-Owned, BOC Size and Profitability, both partially and simultaneously influence the Value of the Company. Based on agency theory and the theory of dividend policy, in line with the phenomenon that increasing Composite Stock Price Index (IHSG) of the company's manufacturing sector was still below the average stock index of all listed companies, and manufacturing companies that pay dividends are still below the average of all listed companies. That is a gap, because the company's manufacturing sector is expected to have a strong financial performance, in order to make a major contribution to Gross Domestic Product (GDP) of Indonesia. This study uses a quantitative approach, with a sample of 110 companies listed on the Indonesian Stock Exchange (BEI) during the years 2009-2014, with a sample of all manufacturing companies (purposive sampling method). Then the data analysis done by statistical tests using multiple linear regression. The results showed variable declared Dividend Policy and Profitability significantly affect the Company's Value, while variable Manager Share-Owned and Size of Board of Commissioners declared not affect the value of the Company. However, Company Value simultaneously influenced by all the independent variables. This finding is interesting, that the success of increasing the value of the company depends on the company's ability to optimally empower resources, as well as in implementing company policies are already set, not by a factor of the incentive manager.
Topic: Financial Management and Accounting