Investment Decisions of Manufacturing Companies Listed on the Indonesia Stock Exchange: A Study on the Role of Dividend Policy and Total Asset Turnover as Moderating Variables

Suharti (Universitas Muhammadiyah Semarang, Kedungmundu Raya No.18, Semarang, Indonesia 50273)
Ari Dwi Astono (Universitas Muhammadiyah Semarang, Kedungmundu Raya No.18, Semarang, Indonesia 50273)
Andika Baskara (Universitas Muhammadiyah Semarang, Kedungmundu Raya No.18, Semarang, Indonesia 50273)
Harlan A. Ganur (Universitas Muhammadiyah Semarang, Kedungmundu Raya No.18, Semarang, Indonesia 50273)

International Conference on Economics, Management, Business, and Accounting
Vol 2 No 1 (2025): International Conference on Economics, Management, Business, and Accounting

This study aims to analyze the effect of dividend policy on investment decisions in manufacturing companies listed on the Indonesia Stock Exchange, as well as to examine the moderating role of Total Asset Turnover. The analytical method used is multiple linear regression and Moderated Regression Analysis (MRA). The findings indicate that dividend policy does not have a significant effect on investment decisions, as reflected by a significance value of 0.098 (>0.05), meaning that dividend distribution has not been able to encourage investment activities effectively. Total Asset Turnover is also found to have no direct significant effect on investment decisions, with a significance value of 0.415 (>0.05). However, the interaction results reveal that Total Asset Turnover moderates and strengthens the relationship between dividend policy and investment decisions, shown by a significance value of 0.040 (<0.05). These results suggest that the impact of dividend policy on investment decisions becomes more optimal when companies improve the efficiency of asset utilization to support operational performance.