Determinant Factor of Firm's Value on Manufacturing Company in Indonesian Stock Exchange

DOI

10.2991/gcbme-16.2016.24How to use a DOI?

Keywords

Firm's Value, Dividend Policies, Manager Share-Owned, Board Size, Profitabilit, Mmanufacturing Company

Abstract

This study aims to analyze and provide empirical evidence that the independent variable Dividend Policy, Manager Share-Owned, Board Size and Profitability, both partially and simultaneously influence the Value of the Firm. Based on agency theory and the theory of dividend policy, in line with the phenomenon that increasing Composite Stock Price Index (IHSG) of the firm's manufacturing sector was still below the average stock index of all listed companies, and manufacturing companies that pay dividends are still below the average of all listed companies. That is a gap, because the firm's 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 companies listed on the Indonesian Stock Exchange (BEI) during the years 2009-2014, with a sample of all manufacturing companies (purposive sampling method). Then the data analysis done by statistical tests using multiple linear regression. The results showed variable declared Dividend Policy and Profitability significantly affect the Firm's Value, while variable Manager Share-Owned and Size of Board of Commissioners declared not affect the value of the Firm. However, Firm Value simultaneously influenced by all the independent variables. This finding is interesting, that the success of increasing the value of the firm depends on the firm's ability to optimally empower resources, as well as in implementing firm policies are already set, not by a factor of the incentive manager.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Suparno Suparno
AU  - Djoko Pitoyo
PY  - 2016/08
DA  - 2016/08
TI  - Determinant Factor of Firm's Value on Manufacturing Company in Indonesian Stock Exchange
BT  - Proceedings of the 2016 Global Conference on Business, Management and Entrepreneurship
PB  - Atlantis Press
SP  - 138
EP  - 147
SN  - 2352-5428
UR  - https://doi.org/10.2991/gcbme-16.2016.24
DO  - 10.2991/gcbme-16.2016.24
ID  - Suparno2016/08
ER  -