Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)

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The Influence of Profitability, Leverage And Free Cash Flow on Firm Value With Dividend Policy as A Moderation Variable (Empirical Study of Consumption Goods Industry Sector Companies on The IDX Period 2019–2021)

Authors
Yolanda Dwi Ferdiansah1, *, Fetri Setyo Liyundira1, Ratna Wijayanti Daniar Paramita1
1Departemen of Accounting, Institut Teknologi Dan Bisnis Widya, Lumajang, Indonesia
*Corresponding author. Email: yolandaferdi0@gmail.com
Corresponding Author
Yolanda Dwi Ferdiansah
Available Online 11 January 2024.
DOI
10.2991/978-94-6463-346-7_14How to use a DOI?
Keywords
dividend policy; firm value; free cash flow; leverage; profitability
Abstract

This study investigates the impact of profitability, leverage, and free cash flow on firm value, with a focus on consumer goods manufacturing companies listed on the Indonesian Stock Exchange from 2019 to 2021. It employs a quantitative descriptive approach, using purposive sampling to select 32 companies. Data analysis utilizes multiple linear regression to assess these relationships and moderated regression analysis (MRA) to explore dividend policy as a moderator. Key findings include the positive influence of profitability and free cash flow on firm value, while leverage negatively affects it. Dividend policy reinforces the positive impact of profitability on firm value and intensifies the negative effect of leverage. However, it does not moderate the relationship between free cash flow and firm value. Approximately 89.3% of firm value is explained by the variables studied, leaving 10.7% influenced by other unexamined factors. These findings enhance our understanding of firm value dynamics in the consumer goods manufacturing sector on the Indonesian Stock Exchange during the specified period.

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 Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
11 January 2024
ISBN
978-94-6463-346-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-346-7_14How 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  - Yolanda Dwi Ferdiansah
AU  - Fetri Setyo Liyundira
AU  - Ratna Wijayanti Daniar Paramita
PY  - 2024
DA  - 2024/01/11
TI  - The Influence of Profitability, Leverage And Free Cash Flow on Firm Value With Dividend Policy as A Moderation Variable (Empirical Study of Consumption Goods Industry Sector Companies on The IDX Period 2019–2021)
BT  - Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
PB  - Atlantis Press
SP  - 68
EP  - 74
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-346-7_14
DO  - 10.2991/978-94-6463-346-7_14
ID  - Ferdiansah2024
ER  -