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Effect of profitability and dividend policy on corporate governance and firm value: Evidence from the Indonesian manufacturing Sectors

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  • Tamrin, Muhammad
  • Mus, H. Rahman
  • , Sudirman
  • Arfah, Aryati
  • Jamali, Hisnol

Abstract

This study aims to analyze the effect of Profitability and Corporate Governance Structure on dividend policy and its impact on the firm value. The population in this research is manufacturing companies listed in Indonesia Stock Exchange as many as 146 companies. The research sample as many as 58 companies, the period of 2013 to 2015. Sampling technique used is purposive sampling. The data analysis technique used is WrapPLS. The results showed that profitability have a negative and significant effect on dividend policy. Profitability has a negative and significant effect on firm value. Profitability is a negative and insignificant effect on firm value as a mediated dividend policy. The structure of corporate governance is positive and significant effect on dividend policy. Corporate governance structure has a positive and significant effect on firm value. Corporate governance structure has a positive and insignificant effect on firm value as a mediated dividend policy. Dividend policy is a positive and insignificant effect on firm value

Suggested Citation

  • Tamrin, Muhammad & Mus, H. Rahman & , Sudirman & Arfah, Aryati & Jamali, Hisnol, 2017. "Effect of profitability and dividend policy on corporate governance and firm value: Evidence from the Indonesian manufacturing Sectors," Thesis Commons sfjqc, Center for Open Science.
    • Handle: RePEc:osf:thesis:sfjqc
    DOI: 10.31219/osf.io/sfjqc
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    1. Samy Ben Naceur & Mohamed Goaied, 2002. "The relationship between dividend policy, financial structure, profitability and firm value," Applied Financial Economics, Taylor & Francis Journals, vol. 12(12), pages 843-849.
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    1. Farouq Altahtamouni & Reem Matahen & Amna Qazaq, 2020. "The Mediating Role of the Capital Structure, Growth Rate, and Dividend Policy in the Relationship Between Return on Equity and Market to Book Value," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 155-164, July.

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