The Effect of Profitability and Company Size On Company Value With Dividend Policy As A Mediation Variable

Dewa Ayu Septia Ardianti; Henny  Rahyuda

doi:10.38035/dijemss.v5i6.3004

Authors

Dewa Ayu Septia Ardianti Management Study Program, Faculty of Economics and Business, Udayana University, Indonesia
Henny Rahyuda Management Study Program, Faculty of Economics and Business, Udayana University, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v5i6.3004

Keywords:

Company Value, Profitability, Company Size, Dividend Policy

Abstract

Company value reflects the current state of the company and can describe the company's prospects in the future. High company value can increase market confidence in company performance. This research aims to analyze the influence of profitability and company size on company value with dividend policy as a mediating variable on the Indonesian Stock Exchange. The population in this research is all banking companies listed on the Indonesia Stock Exchange in the 2020-2022 period, namely 46 companies. The number of samples in this research was 14 companies listed on the Indonesia Stock Exchange using a non-probability sampling method with purposive sampling technique. Data was collected from the company's annual financial reports from 2020-2022. Data analysis was carried out using path analysis techniques. The results of this research show that profitability and dividend policy have a positive effect on company value, while company size has no effect on company value. Profitability and company size also have no effect on dividend policy. The research results also show that dividend policy is unable to mediate the influence of profitability and company size on company value.

References

Aditya, E., Mardani, R.M., & Hufron, M. (2020). The Influence of Profitability, Liquidity and Company Size on Manufacturing Company Dividend Policy for the 2016-2018 Period. Scientific Journal of Management Research, 9(2).

Agustin, N., Tristiarini, N., Hernawati, RI, & Mertha Agung Durya, NP (2023). THE EFFECT OF INFLATION, INTEREST RATES AND EXCHANGE RATES ON COMPANY STOCK PRICES DURING THE COVID-19 PANDEMIC. Journal of Applied Accounting Research , 7 (1), 65–77.

Agus Harjito and Martono. 2012. Financial Management. 2nd Edition. Ekonisia, Yogyakarta.

Agus, Riyanto. (2011). Research methodology textbook. Jakarta. EGC

Agus Sartono. (2010). Financial Management Theory and Application. Edition 4. Yogjakarta: BPFE

Agustino, NWIP, & Dewi, SKS (2019). The Influence of Company Size, Profitability, and Leverage on Dividend Policy in Manufacturing Companies. Udayana University Management E-Journal , 8(8), 4957. https://doi.org/10.24843/ejmunud.2019.v0 8.i08.p09

Amah, N. (2012). Factors that influence the Dividend Policy of Companies Going Public in Indonesia. Journal of Accounting and Education , 1(1), 45-55

Anindya, KN, & Muzakir, MFA (2023). The Influence of Dividend Policy on Company Value in Manufacturing Companies in Indonesia. p-ISSN: 1411-4054/e-ISSN: 2579-3217

Astuti, NKB, & Yadnya, IP (2019). The Influence of Profitability, Liquidity and Company Size on Company Value Through Dividend Policy. Udayana University Management E-Journal , 8(5), 3275.

Atiningsih, S., & Izzaty, KN (2020). The Effect Firm Size On Company Value With Profitability As Intervening Variable And Dividend Policy As Moderating Variable. Business And Accounting Research (Ijebar) Peer Reviewed-International Journal , 5.

Augustina, R., & Apriyanto, G. (2020). Study of Capital Structure (IDX 2011-2017): Firm Growth, Firm Size, and CSR Disclosure on Firm Value. International Research Journal of Advanced Engineering and Science , 5 (1), 128–133.

Aulia, AN, Mustikawati, RI, & Hariyanto, S. (2020). Profitability, Company Size and Intellectual Capital on Company Value. Management Student Research Journal, 6(1).

Aprianto, MAD, Muttaqiin, N., & Anshori, MY (2020). The Influence of Investment Policy, Debt Policy and Dividend Policy on Company Value (Empirical Study of Manufacturing Companies in the Basic Industry and Chemical Sectors listed on the Indonesia Stock Exchange (BEI) for the 2014-2018 Period). Ecopreneur Journal.12 , 3(2), 87–100.

Ardiantini, NPN, Surasni, NK, and Sukma, AA (2020). Financial Performance and Intellectual Capital Disclosure as Determinants of the Value of Banking Companies with Company Size as Moderating. International Journal of Social Science and Business , 4(3), 414–421.

Astika, IG, Suryandari, NNA, & Putra, GBB (2019). The Influence of Profitability, Dividend Policy and Company Size on Company Value in Manufacturing Companies Listed on the Indonesia Stock Exchange (BEI) for the 2015-2018 Period. In National Seminar on Innovation in Science, Technology and Humanities Research-InoBali 574-585

Atmikasari, Dwi, Iin Indarti, and Elma Muncar Aditya. 2020. "The Effect of Profitability on Company Value with Dividend Policy as an Intervening Variable." Asset Scientific Journal , 22(1):25–34.

Atmoko, Y., Defung, F., & Tricahyadinata, I. (2017). The Effect of Return On Assets, Debt To Equity Ratio, And Firm Size On Dividend Payout Ratio Effect Of Return On Assets, Debt To Equity Ratio, And Firm Size Against Dividend Payout Ratio. Mulawarman Journal of Economics and Business , 14(2), 103–109.

Barokah, L. & Fachrurrozie (2019). Accounting Analysis Journal. Profitability Mediates the Effect of Managerial Ownership, Company Size, and Leverage on the Disclosure of Intellectual Capital. Accounting Analysis Journal , 8(1), pp. 1–8. doi: 10.15294/aaj.v8i1.27860.

Bon, SF, & Hartoko, S. (2022). The Effect of Dividend Policy, Investment Decision, Leverage, Profitability, and Firm Size on Firm Value. European Journal of Business and Management Research , 7 (3), 7–13.

Brigham, E.F. and J.F. Houston. (2019). Basics of Financial Management. Fourteenth Edition. Book Two. Salemba Four. Jakarta.

Cheryta, Aldea Mita et al. (2017). The effect of leverage, profitability, information asymmetry, firm size on cash holding and firm value of manufacturing firms listed at Indonesian Stock Exchange . International Journal of Research in Business Studies and Management , 4(4), 2394-5923.

Defrizal and Mulyawan. 2015. Analysis of the Effect of Financial Ratios on Stock Returns (Study of Manufacturing Sector Shares Listed on the Indonesian Stock Exchange 2008-2012)," Journal of Management and Business , 6(1), p. 22–40.

Demirgüne?, K. (2015). Determinants of Target Dividend Payout Ratio: A Panel Autoregressive Distributed Lag Analysis. International Journal Of Economics And Financial Issues , 5(2), 418–426.

Dewi, NKMA, and Muliati, NK (2021). The Influence of Profitability, Company Size and Liquidity on Dividend Policy. Hita Accounting and Finance, 2(2), 359-377.

Fauzya, AM (2021). Analysis of the Influence of Company Size and Profitability on Company Value. JASa (Journal of Accounting, Auditing and Accounting Information Systems) , 5 (3), 385–394.

Ghozali, Imam. (2016). Multivariate Analysis Applications with the IBM SPSS 23 Program (Edition 8). Printing VIII. Semarang: Diponegoro University Publishing Agency.

Ghozali, Imam. (2018). Multivariate Analysis Application Using the IBM SPSS 25 Program. Semarang: Diponegoro University Publishing Agency.

Hadian, N. (2019). The influence of profitability and leverage on dividend policy in the banking sector. International Journal of Innovation, Creativity and Change, 6(7), 118–129.

Hafiz Rahmadi, I., & Mutasowifin, A. (2021). The Influence of Intellectual Capital on Financial Performance and Company Value (Case Study of Financial Sector Companies Listed on the Indonesian Stock Exchange 2017-2019). INOBIS: Indonesian Journal of Business Innovation and Management , 04 (02), 279–294.

Hanafi, Mahduh and Abdul Halim. (2012). Financial Report Analysis. Yogyakarta: (UPP) STIM YKPN.

Hanafi, Mamduh M (2014). Financial Management (1st Edition). Yogyakarta, Indonesia: BPFE.

Harmono. (2009). Financial Management: Based on the Blanced Scorecard, Jakarta: Bumi Aksara.

Harmono. (2017). Balanced Scorecard-Based Financial Management Approach to Theory, Cases and Business Research. (Edition 1, Print. 6). Jakarta: Bumi Literacy

Hendra Sintyana, IP, & Sri Artini, LG (2019). Influence of Profitability, Capital Structure . 8 (2), 7717–7745.

Harry. (2015). Financial Report Analysis. Yogyakarta: CAPS (Center for Academic Publishing Services).

Harry. (2017). Financial Report Analysis (Integrated and Comprehensive edition). Jakarta: Grasindo

Hasanah, A. N, & Lekok, W. (2019). Factors that Influence Company Value: Dividend Policy as a Mediator. JOURNAL OF BUSINESS AND ACCOUNTING, 21(2), 165-178.

Husna, A., & Satria, I. (2019). EFFECTS OF RETURN ON ASSET, DEBT TO ASSET RATIO, CURRENT RATIO, FIRM SIZE, AND DIVIDEND PAYOUT RATIO ON FIRM VALUE. International Journal Of Economics And Financial Issues , 9 (5), 50–54.

Huda, S., Zuhroh, D., & Firdiansjah, A. (2020). The Effect of Profitability and Capital Structure on Firm Value Through Dividend Policy in Transportation Companies Listed on the Indonesia Stock Exchange for the Period of 2015-2018. International Journal of Advances in Scientific Research and Engineering, 06(09), 44–55. https://doi.org/10.31695/ijasre.2020.33878

Ichfan, K., Mutmainah, S., & Mila. (2019). The Importance of Financial Management for Companies. Journal of Islamic Accounting and Finance , 2 (2), 032–042.

Jape, Smita. (2016). Study and Analysis of Dividend Policies, Practice and its Application in Mumbai Based Corporate Houses. International Journal of Financial Management. 6(4), 34-48.

Jariah, A. (2016). Liquidity, Leverage and Profitability Influence on the Value of Manufacturing Companies in Indonesia through Dividend Policy. Indonesian Accounting and Finance Research, 1(2), 108–118. https://doi.org/10.23917/reaksi.v1i2.2727

Cashmere. (2019). Financial Report Analysis. First Edition. Twelfth Printing. PT Raja Grafindo Persada. Jakarta

Lasniroh, T., Sarumpaet, & Suhardi, AR (2019). Implications of profitability, liquidity, leverage and MBV on dividend payout ratio in manufacturing companies in IDX 2014-2016. International Journal of Innovation, Creativity and Change , 6(8), 11–25.

Lazuardi K, P., & Wiratno, A. (2023). Determination of Company Value in Conventional Banking in Indonesia. JOURNAL OF ACCOUNTING , 18 (2), 111–120.

Listari, S. (2018). Analysis of Factors that Influence Company Value in Companies Listed in the LQ45 Index on the Indonesian Stock Exchange, Sinta Listari .

Marantika, A. (2017). Company Value (Firm Value) Concept and Implications . Www.Aura-Publishing.Com

Maulida, A., & Karak, M.E. (2021). The Effect Of Company Size, Leverage, Profitability And Dividend Policy On Company Value On Manufacturing Companies Listed On The Indonesia Stock Exchange (Idx) For The 2014-2018 Period. Business and Accounting Research (IJEBAR) Peer Reviewed-International Journal , 5 .

Mayanti, NMD, Endiana, IDM, Pramesti, IGAA, & Rahmadani, DA (2021). The Influence of Financial Performance, Company Size, and Debt Policy on Dividend Policy in Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange (BEI) for the 2016-2019 Period. KARMA (Accounting Student Research Work) , 1 (1), 297- 308.

Mayogi, DG, and Fidiana. (2016). "The Influence of Profitability, Dividend Policy, and Debt Policy on Company Value". Journal of Accounting Science and Research . 5(1), ISSN: 2460-0585.

Mercyana, C., Hamidah, & Kurnianti, D. (2022). The Influence of Capital Structure, Profitability, Company Size and Liquidity on the Value of Infrastructure Companies Listed on the Indonesia Stock Exchange for the 2016-2020 Period. Journal of Business, Management, And Finance , 3 (1), 101–113.

Mutiasari, AI (2020). Development of the Banking Industry in the Digital Era. Journal of Business Economics and Entrepreneurship, 9(2), 32-41.

Novita Sari, KA (2015). The Influence of Liquidity, Leverage, Company Growth, and Profitability on Dividend Policy in Manufacturing Companies on the IDX. Unud Management Journal, 4(10), 3346-3374.

Nur, Triasesiarta. (2018). The influence of profitability and liquidity on dividend policy with firm size as a moderator. ESSENCE: Journal of Business Management 21.2 1-15.

Nurfatma, Hestin., and Purwohandoko. 2020. The Influence of Cash Flow, Company Size, and Financial Performance on Dividend Policy on the Indonesian Stock Exchange. Journal of Management Science, Management Department, Faculty of Economics, Surabaya State University. 8(2). 482-489.

Ovami, D.C. (2020). The Influence of Dividend Policy on the Value of Companies Listed in the LQ 45 Index. Owner: Accounting Research and Journal , 4 (2), 331–336.

Pramana, IGNAD and IK Mustanda. 2016. The Influence of Profitability and Size on Company Value with CSR as a Moderating Variable , Unud Management E-Journal. 5(1): 561-59

Prasetya Margono, F., & Gantino, R. (2021). INFLUENCE OF FIRM SIZE, LEVERAGE, PROFITABILITY, AND DIVIDEND POLICY ON FIRM VALUE OF COMPANIES IN INDONESIA STOCK EXCHANGE. Copernican Journal Of Finance & Accounting , 10 (2), 45–61.

Ragil Saputri, D., & Bahri, S. (2020). The Effect Of Leverage, Profitability, And Dividend Policy On Firm Value Institute Technology And Business Asia Malang .

Rahayu, D., & Rusliati, E. (2019). Institutional Ownership, Managerial Ownership, and Company Size on Dividend Policy. Journal of Contemporary Accounting Research , 11 (1), 41–47.

Riyadi, S. (2016). Banking Assets and Liability Management . Fourth Edition, Publishing Institute, Faculty of Economics & Business, University of Indonesia.

Rohaeni, N., Hidayat, S., & Fatimah, I. (2018). The Value of Manufacturing Companies on the Indonesian Stock Exchange Viewed from the Perspective of Dividend Policy and Debt Policy , 9(2).

Safiah & Aprianto, LK (2021). The Effect of Profitability on Company Value with Dividend Policy as an Intervening Variable. JUMABIS (JOURNAL OF MANAGEMENT & BUSINESS), 5(1), 1-13.

Saputri, DR, & Bahri, S. (2021). The Effect Of Leverage, Profitability, And Dividend Policy On Firm Value. International Journal of Educational Research and Social Sciences (IJERSC), 2(6), 1316–1324

Satria Bagaskara, R., Hendra Titisari, K., & Dewi, RR (2021). The influence of profitability, leverage, company size and managerial ownership on company value. ECONOMIC FORUM , 23 (1), 29–38.

Setia Pratiwi, U., Pramono, H., Dirgantari, N., & Santoso, SEB (2023). The Effect of Profitability on Firm Value Moderated by Dividend Policy (Empirical Study of IDX High Dividend Companies 20 Years 2019-2021). Indonesian Journal of Business Analytics , 3 (1), 19–32.

Sholikhah, SM, Vedy, NK, & Khiswari, Z. (2022). The Influence of Company Profitability and Size on Dividend Policy with Company Value as Moderating Variable. Journal of Corporate Finance Management and Banking Systems , 26 , 29–41. https://doi.org/10.55529/jcfmbs.26.29.41

Siahaan, AP, & Hanantijo, D. (2020). The Role of Profitability on Dividend Policy in Property and Real Estate Registered Subsector Company in Indonesia. International Journal of Progressive Sciences and Technologies (IJPSAT , 23 (2), 376–383. http://ijpsat.ijsht-journals.org

Simatupang, HB (2019). THE ROLE OF BANKING IN IMPROVING THE INDONESIAN ECONOMY. In Journal of Multiparadigm Accounting Research (JRAM) , 6(2).

Sondakh, R. (2019). The Effect Of Dividend Policy, Liquidity, Profitability And Firm Size On Firm Value In Financial Service Sector Industries Listed In Indonesia Stock Exchange 2015-2018 Period. Accountability , 8 (2), 91.

Sriwahyuni, Ulfa, and Wihandaru. (2016). "The Influence of Profitability, Leverage, Institutional Ownership, and Investment Opportunity Set on Company Value with Dividend Policy as an Intervening Variable in Manufacturing Companies Listed on the IDX for the 2010-2014 Period." 7(1):84–109.

Subramanyam, KR ; (2014). Financial Statement Analysis (11th Edition) . Http://Slims.Umn.Ac.Id//Index.Php?P=Show_Detail&Id=3133

Sudana, I Made. 2019. Financial Management Theory and Practice. Surabaya: Airlangga University Press.

Sugiyono (2019). Quantitative, Qualitative, and R&D Research Methods. Bandung: Alphabet.

Suhendra, I., & Ronaldo, E. (2017). The Influence of Banking Intermediation on Indonesia's Economic Growth, 12(1).

Sukoco, Herry. (2013). The Influence of Debt to Equity Ratio, Profitability, Firm Size and Liquidity on Company Value through Mediation of Dividend Payout Ratio. Journal of Business Strategy . 22(2):112-127.

Sulhan, M., & Herliana, TY (2019). The Effect of Liquidity and Profitability to Dividend Policy With Asset Growth as Moderating Variable (Study on Property Sector, Real Estate and Building Construction Listed On Indonesia Stock Exchange) . Advances in Economics, Business and Management Research, 101, 23-28.

Suriyanti, FHM (2023). The Influence of Dividend Policy and Capital Structure on the Value of Manufacturing Companies on the Indonesian Stock Exchange. Journal of Management , 4(1), 11–21. https://Doi.Org/10.56341/Amj.V4i1.243

Surpa Dewantari, NL, Cipta, W., & Agus Jana Susila, IP (2019). The Influence of Company Size and Leverage and Profitability on Company Value in Food and Beverages Companies in Bei. Bisma: Journal of Management , 5 (2).

Tandelilin, Eduardus. (2017). Capital Markets: Portfolio and Investment Management . Yogyakarta: Kanisius.

Tinangon, N., Tinangon, J., & Suwedja, IG (2022). The Influence of Company Size on Dividend Policy in Real Estate and Property Companies Listed on the Indonesian Stock Exchange for the 2016 – 2020 Period. Lppm Journal for Economic, Social, Cultural and Legal Sectors, 5(2), 1157–1166

Tumanggor, AH, Erlina, & Bukit, R. (2019). The Effect Of Capital Structure, Firm Growth, Firm Size And Profitability On Firm Value Of Companies With Good Corporate Governance As A Moderating Variables In Manufacturing Companies In The Basic And Chemical Industry Registered In Indonesia Stock Exchange (Idx) In 2013-2017 .

Wiagustini, Luh Putu. (2014). Basics of Financial Management . Denpasar: Udayana University Press.

Wijaya, A. (2021). The Effect Of Dividend Policy, Debt Policy, Profitability, Asset Structure, And Company Size On The Value Of Manufacturing Companies Listed On The Indonesia Stock Exchange 2013-2019. Business and Accounting Research (IJEBAR) Peer Reviewed-International Journal , 5 .

Wijaya, R. (2019). Rendi Wijaya Analysis of the Development of Return on Assets (ROA) and Return on Equity (ROE) to Measure Financial Performance Analysis of the Development of Return on Assets (Roa) and Return on Equity (Roe) to Measure Financial Performance Journal of Management Science. Journal of Management Science

Witjaksono, A., & Sari, RP (2021). The Effect of Enterprise Risk Management, Firm Size, Profitability, and Leverage on Firm Value. EAJ (Economic and Accounting Journal) , 4 (1), 71.

Wulan Yuni, L. (2022). The influence of profitability on company value with dividend policy as mediation, 1(1).

Joseph. (2015). Dividend Payout Ratio And Performance Of Deposit Money Banks In Nigeria. International Journal Of Advances In Management And Economics , 4(6), 98–105.

Zainuddin, Z., & Mananohas, OA (2020). The Effect Of Debt Policies, Profitability, Managerial Ownership Structure, And Liquidity On Dividend Policy. The Indonesian Journal of Accounting Research, 23(3), 411–428. https://doi.org/10.33312/ijar.483

Zulkifli, Z., & Latifah, L. (2021). The Influence of Corporate Governance, Company Size, Profitability and Company Growth on Dividend Policy. Journal of Management Research, Widya Wiwaha College of Economics, Master of Management Program , 8(1), 17-27.