Proceedings of the International Conference on Intellectuals’ Global Responsibility (ICIGR 2022)

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Profitability Drives Dividend Policy and Firm Value in the Digital Era

Authors
Supardi1, *, Sriyono1, Sigit Hermawan1
1Faculty of Business, Law and Social Sciences Muhammadiyah Sidoarjo University, Sidoarjo, Indonesia
*Corresponding author. Email: supardi@umsida.ac.id
Corresponding Author
Supardi
Available Online 22 May 2023.
DOI
10.2991/978-2-38476-052-7_58How to use a DOI?
Keywords
Company Size; Leverage; Profitability; Company Value; Dividend Policy
Abstract

This study aimed to investigate the impact of profitability, firm size, and leverage on firm value through dividend policy in the digital era, where companies strive to increase profits and expand their global market presence. The research used a descriptive and verification method, with data collected through secondary sources and a purposive sampling method for a period of five years. Multiple regression analysis using SPSS version 20.0 was employed to analyze the data. The findings indicate that profitability, firm size, and leverage have a significant influence on dividend policy and firm value, with dividend policy mediating the effect of profitability and leverage on firm value. However, dividend policy did not mediate the effect of firm size on firm value. These results suggest that companies should focus on profitability and adopt a consistent dividend policy to increase their value, while investors can use these factors to make informed decisions about investing in a company.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Intellectuals’ Global Responsibility (ICIGR 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
22 May 2023
ISBN
978-2-38476-052-7
ISSN
2352-5398
DOI
10.2991/978-2-38476-052-7_58How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Supardi
AU  - Sriyono
AU  - Sigit Hermawan
PY  - 2023
DA  - 2023/05/22
TI  - Profitability Drives Dividend Policy and Firm Value in the Digital Era
BT  - Proceedings of the International Conference on Intellectuals’ Global Responsibility (ICIGR 2022)
PB  - Atlantis Press
SP  - 532
EP  - 541
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-052-7_58
DO  - 10.2991/978-2-38476-052-7_58
ID  - 2023
ER  -