International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS)
Vol. 4 No. 6 (2024): December

THE EFFECT OF DIVIDEND POLICY AND LEVERAGE ON COMPANY VALUE (STUDY OF FMCG COMPANIES LISTED ON THE STOCK EXCHANGE IN 2019-2023)

Febriana Roosmawati (Institut Teknologi Sawit Indonesia)
Adi Widjajanto (Institut Teknologi Sawit Indonesia)
Fara Maretta Fedinanda Kusumastuti (Universitas Sumatera Utara)
Rina Br. Bukit (Universitas Sumatera Utara)



Article Info

Publish Date
11 Dec 2024

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.

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Journal Info

Abbrev

IJEBAS

Publisher

Subject

Economics, Econometrics & Finance

Description

This journal aims to examine new breakthroughs and current issues regarding advances in science and technology in the fields of Economics, Business, Sharia Administration, Accounting and Agriculture ...