Effec of Dividend Policies, Managerial Ownership, Board Size and Profitability To Firm Value On Manufacturing Company in Indonesia Stock Exchane
Suparno (a*); Jaelani (b*); Djoko Pitojo (c*)
Sekolah Pasca Sarajana UPI Bandung
This study aims to analyze and provide empirical evidence that the independent dividend policies, managerial ownership, board size and profitability influence the firm value, based on the agency theory and the dividend theory, in line with the phenomenon that increasing IHSG of the companys manufacturing sector is still below the average IHSG of all listed companies, and manufacturing companies that pay dividends are still below the average of all listed companies, it is gap, because the companys 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 companys manufacturing sector listed on the Indonesian Stock Exchange (BEI) during the years 2009-2014, the sample is selected based on purposive sampling method. Then the data analysis done by statistical tests using multiple linear regression. The results showed variable dividend policies, board size and profitability was significant effect on firm value, while variable managerial ownership does not affect on firm value. This finding is interesting, that the success of increasing the firm value depends on the companys ability to optimally empower resources, and implement corporate policies that have been defined, not by a factor of incentives managers.
Topic: Financial Management and Accounting