Jurnal Ilmiah Manajemen Kesatuan
Vol. 13 No. 4 (2025): JIMKES Edisi Juli 2025

Improving Firm Value to Dividend Policy Evidence of Indonesia Public Company in Emerging Market

Pristiana, Ulfi (Unknown)
Murtadho, Muis (Unknown)



Article Info

Publish Date
03 Jul 2025

Abstract

Investors constantly aim for a rise in firm value and sustainability to ensure favorable returns on their capital investments. Nonetheless not every company issues dividends. This research seeks to investigate how dividend payments influence firm value, concentrating on 517 firms listed on the Indonesia Stock Exchange during the period from 2014 to 2023. Data was collected from secondary sources, particularly via annual reports released on the Indonesia Stock Exchange. The results show that policies regarding dividend payments greatly impact a company's value. Notably, the research indicates that businesses with reduced dividend payments often have a more substantial effect on firm value, while those with increased dividend distributions do not exhibit a significant impact. Additionally, the effects of dividend policies differ among various industrial sectors. For example, in the energy and non-cyclical consumer sectors, dividend distributions greatly influence firm value. In contrast, sectors like basic materials, industrials, and real estate do not show a statistically meaningful connection. These findings provide important insights for corporate leaders, indicating that regular and strategic dividend disbursements can cultivate investor confidence and allegiance. Consequently, this confidence from investors could foster the firm's long-term development and enhance its valuation in the capital market

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Journal Info

Abbrev

jimkes

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Jurnal Ilmiah Manajemen Kesatuan (JIMKES) dikelola dan diterbitkan oleh Lembaga Penelitian dan Pengabdian Kepada Masyarakat (LPPM) Institut Bisnis dan Informatika Kesatuan bekerjasama dengan Fakultas Bisnis dan Fakultas Vokasional IBI ...