Analysis the Influence of Financial Performance on Corporate Value with Dividend Policy as a Mediation Variable
DOI:
https://doi.org/10.59890/ijma.v3i1.173Keywords:
Corporate Value, Dividend Policy, Financial PerformanceAbstract
This Research using dividend policy as a mediating variable, and attempts to ascertain and examine the relationship between financial performance and corporate value. Manufacturing companies listed on the Indonesia Stock Exchange (IDX) served as the sample for this research. The dependent variable is company value as determined by Tobin's Q, the independent variables are financial performance as determined by return on equity, return on assets, and net profit margin, and the mediation variable is dividend policy as determined by dividend payment ratio. Purposive sampling was used in this study to choose samples from 44 industrial companies. According to the findings of the path analysis model using smartPLS 3.0, indicates that financial performance has a positive effect on dividend policy and corporate value, and dividend policy has a positive effect on corporate value. Dividend Policy mediates the relationship between financial performance and corporate value. The implications and research suggestions for companies are to increase corporate value, companies can focus on increasing the value of financial performance and be consistent in dividend distribution. For investors, they can consider financial performance and dividend policy as a reference for making investment decisions.
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