JEFMS Journal

ABSTRACT:

The value of the company is very useful for external and internal parties of the company because it is a reflection of the company's condition and public trust. This study aims to analyze the effect of capital structure, foreign ownership, and dividend policy on firm value by involving four control variables, namely company growth, company size, DAR and ROE. This research was conducted on real estate and property sector companies listed on the Indonesia Stock Exchange in 2015-2018 with a sample of 140 companies. Data were collected from the Company's Financial Statements document, then analyzed using panel data regression using the Chow Test until the Fixed Common Effect model was selected. The results showed that foreign ownership and ROE had a significant positive effect on firm value. DAR has a negative effect, while capital structure, dividend policy, company size, and company growth have no effect on firm value.

KEYWORDS:

Capital Structure, Dividend Policy, Foreign Ownership, Firm Value, Panel Data

REFERENCES:

1) Banamtuan, O., & Zuhroh, D. (2020). Asset Management and Capital Ownership on Firm Value: Through Profitability. In AFRE Accounting and Financial Review (Vol. 3, Issue 1, pp. 83–92).

2) Barkemeyer, R. (2007). Legitimacy as a Key Driver and Determinant of CSR in Developing Countries. System, 44(June), 1–23.

3) Bernandhi, R. dan A. M. (2014). Pengaruh kepemilikan manajerial, Kepemilikan institusional, Kebijakan deviden, Leverage dan ukuran perusahaan terhadap nilai perusahaan. Diponegoro Journal of Accounting, 3(1), 177–191.

4) Bilal, Z. O., & Jamil, S. A. (2015). DOES DIVIDEND POLICY IMPACT STOCK MARKET PRICES?-EVIDENCE FROM OMAN. IJABER, 13(9), 6873–6883.

5) Chosiah, C., Purwanto, B., & Ermawati, W. J. (2019). Dividend policy, investment opportunity set, free cash flow, and company performance: Indonesian’s agricultural sector. Jurnal Keuangan Dan Perbankan, 23(3). https://doi.org/10.26905/jkdp.v23i3.2517

6) DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147. https://doi.org/10.2307/2095101

7) Fama, E. F., & French, K. R. (1998). Taxes, Financing Decisions, and Firm Value. In Journal of Finance (Vol. 53, Issue 3, pp. 819–843).

8) Farooq, O., & Chetioui, Y. (2012). Corporate governance and stock price performance of firms during the crisis: Evidence from the MENA region. International Journal of Business Governance and Ethics, 7(4), 331–349. https://doi.org/10.1504/IJBGE.2012.051226

9) Firmansyah, A., & Purnama, E. B. D. (2020). Do Derivatives Instruments Ownership Decrease Firm Value in Indonesia? JURNAL Riset Akuntansi Dan Keuangan Indonesia, 5(1), 1–9.

10) Ghosh, B. S., Ghosh, A., & Marg, G. A. K. V. (n.d.). Do Leverage, Dividend Policy and Profitability influence the Future Value of Firm? Evidence from India Do Leverage, Dividend Policy and Profitability influence the Future Value of Firm? Evidence from India Do Leverage, Dividend Policy and Profitability in.

11) Gultom, R., & Wijaya, S. W. (2014). Analisis Faktor Faktor yang Mempengaruhi Nilai Perusahaan Farmasi di Bursa Efek Indonesia. Jurnal Wira Ekonomi Mikroskil, 3(1), 51–60.

12) Hadian, A., & Adaoglu, C. (2020). The effects of financial and operational hedging on company value: The case of Malaysian multinationals. Journal of Asian Economics, 70. https://doi.org/10.1016/j.asieco.2020.101232

13) Haniffa, R. M., & Cooke, T. E. (2005). The impact of culture and governance on corporate social reporting. Journal of Accounting and Public Policy, 24(5), 391–430. https://doi.org/10.1016/j.jaccpubpol.2005.06.001

14) Hasibuan, M. D. N. G. W. E., & NP, V. A. R. (2016). PENGARUH LEVERAGE DAN PROFITABILITAS TERHADAP NILAI PERUSAHAAN (Studi pada Perusahaan Property dan Real Estate yang Terdaftar di Bursa Efek Indonesia Periode Tahun 2012-2015). In Jurnal Administrasi Bisnis (JAB)|Vol (Vol. 39, Issue 1).

15) Hung, D. N., Cuong, P. D., & Ha, V. T. B. (2018). Effects of financial statements information on firms’ value: Evidence from Vietnamese listed firms. Investment Management and Financial Innovations, 15(4), 210–218. https://doi.org/10.21511/imfi.15(4).2018.17

16) Jahfer, A., & Mulafara, A. H. (2016). Dividend policy and share price volatility: Evidence from Colombo stock market. International Journal of Managerial and Financial Accounting, 8(2), 97–108. https://doi.org/10.1504/IJMFA.2016.077947

17) Jonardi, C. F. Y. (2021). Pengaruh Profitabilitas, Struktur Modal, Dan Likuiditas Terhadap Nilai Perusahaan. Jurnal Paradigma Akuntansi, 3(1), 312. https://doi.org/10.24912/jpa.v3i1.11575

18) MacDiarmid, J., Tholana, T., & Musingwini, C. (2018). Analysis of key value drivers for major mining companies for the period 2006–2015. Resources Policy, 56, 16–30. https://doi.org/10.1016/j.resourpol.2017.09.008

19) Novita, & Djakman, C. D. (2008). Pengaruh Struktur Kepemilikan terhadap Luas Pengungkapan Tanggung Jawab Sosial (CSR Disclosure) pada Laporan Tahunan Perusahaan. Makalah Disampaikan Pada Simposium Nasional Akuntansi X, July 2008.

20) Pakekong, M. I., Murni, S., & Rate, P. V. (2019). the Effect of Ownership Structure, Dividend Policy and Debt Policy on Firm Value in Incurance Companies Listed on Idx in the Period of 2012-2016. 611 Jurnal EMBA, 7(1), 611–620.

21) Pamungkas, H. S., & Puspaningsih, A. (2013). Pengaruh keputusan investasi, keputusan pendanaan, kebijakan dividen dan ukuran perusahaan terhadap nilai perusahaan. Jurnal Akuntansi & Auditing Indonesia, 17(2), 155–164. https://doi.org/10.20885/jaai.vol17.iss2.art6

22) Priyanto, E. A., & Qibthiyyah, R. M. (2020). Pengaruh Kepemilikan Asing Terhadap Kinerja Perusahaan Manufaktur di Indonesia. Jurnal Kebijakan Ekonomi, 15(2).

23) Putri, E. A., Nuraina, E., & Styaningrum, F. (2018). Pengaruh Kebijakan Dividen, Kebijakan Hutang Dan Profitabilitas Terhadap Nilai Perusahaan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia. JTHE 11th FIPA FORUM ILMIAH PENDIDIKAN AKUNTANSI PROGAM STUDI PENDIDIKAN AKUNTANSI-FKIP UNIVERSITAS PGRI MADIUN. https://doi.org/10.54367/jrak.v3i1.439

24) Resti, A. A., Purwanto, B., & Ermawati, W. J. (2019). Investment opportunity set, dividend policy, company’s performance, and firm’s value: Some Indonesian firms evidence. Jurnal Keuangan Dan Perbankan, 23(4). https://doi.org/10.26905/jkdp.v23i4.2753

25) Setiawan, D., Asrihapsari, A., Brahmana, R. K., Rizky, H. P., & Widawati, M. W. (2022). Role of Family Ownership in the Relationship between Corporate Social Responsibility and Firm Performance. Complexity, 2022. https://doi.org/10.1155/2022/1318875

26) Setiawan, D., & Phua, L. K. (2013). Corporate governance and dividend policy in Indonesia. Business Strategy Series, 14(5–6), 135–143. https://doi.org/10.1108/BSS-01-2013-0003

27) Setyabudi, A. (2018). Pengaruh Struktur Modal Terhadap Nilai Perusahaan pada Perusahaan Manufaktur yang terdaftar pada Bursa Efek Indonesia. Skripsi Universitas Muhammadiyah Surakarta, 81–96.

28) Shrivastav, S. M., & Kalsie, A. (2017). The Relationship between Foreign Ownership and Firm Performance in India:An Empirical Analysis. Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics, 59(2), 152. https://doi.org/10.21648/arthavij/2017/v59/i2/164448

29) Sissandhy, A. K., & Sudarno. (2014). Pengaruh Kepemilikan Asing Terhadap Nilai Perusahaan Dengan Pengungkapan Corporate Social Responsibility Sebagai Variabel Intervening. Diponegoro Journal of Accounting, 3(2), 34–40.

30) Subing, H. J. T., & Susiani, R. (2019). Internal factors and firm value: A case study of banking listed companies. Jurnal Keuangan Dan Perbankan, 23(1). https://doi.org/10.26905/jkdp.v23i1.2405

31) Sujono, Idrus, M., Sudarma, M., & Solimun. (2011). Determinan Struktur Modal Inovasi dan Nilai Perusahaan. Jurnal Aplikasi Manajemen, 9(3), 826–839.

32) Susanti, N., & Restiana, N. G. (2018). What’s the Best Factor to Determining Firm Value? Jurnal Keuangan Dan Perbankan, 22(2). https://doi.org/10.26905/jkdp.v22i2.1529

33) Tarczynski, W., Tarczynska-Luniewska, M., & Majewski, S. (2020). The value of the company and its fundamental strength. Procedia Computer Science, 176, 2685–2694. https://doi.org/10.1016/j.procs.2020.09.331

34) Triyono, Kusumastuti, A., Palupi, & Diah, I. (2019). The Influence of Profitability, Assets Structure, Firm Size, Business Risk, Sales Growth, and Dividend Policy on Capital Structure. JURNAL Riset Akuntansi Dan Keuangan Indonesia, 4(3), 101–111.

35) Wibowo, S. (2016). Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Kebijakan Dividen, dan Kebijakan Hutang Terhadap Nilai Perusahaan. In ADLN-Perpustakaan Universitas Airlangga.

36) Yuliani. (2012). BLOCKHOLDER OWNERSHIP, CAPITAL STRUCTURE AND MANUFACTURE COMPANY VALUE IN INDONESIA STOCK EXCHANGE. In Journal of Economics (Vol. 15, Issue 3, pp. 471–482).