Fara Maretta Fedinanda Kusumastuti
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THE EFFECT OF DIVIDEND POLICY AND LEVERAGE ON COMPANY VALUE (STUDY OF FMCG COMPANIES LISTED ON THE STOCK EXCHANGE IN 2019-2023) Febriana Roosmawati; Adi Widjajanto; Fara Maretta Fedinanda Kusumastuti; Rina Br. Bukit
International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) Vol. 4 No. 6 (2024): December
Publisher : CV. Radja Publika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54443/ijebas.v4i6.2216

Abstract

Investors believe in the high value of the company because it shows good performance and profitable future prospects. Companies seek to increase profits or wealth, especially for their shareholders, by increasing the market value of the company's stock price. This study investigates how dividend policy and leverage affect the value of the company in Fast-Moving Consumer Goods (FMCG) companies listed on the Stock Exchange from 2020 to 2023. Secondary data obtained from relevant company financial statements were used in the data collection process. Panel data regression was used to test the hypotheses. The results show that dividend policy increases the value of the company, which means that investors consider a good dividend policy as an indicator of the health and growth of the company. Leverage also has a positive effect on the value of the company, indicating that the wise use of debt can increase the value of the company. This study makes an important contribution to the understanding of the factors that affect the value of the company in the context of the FMCG industry. The practical implication of this study is that company management can consider a better dividend policy, wise debt management as a strategy to increase their company value.