The Moderating Effect of Dividend Policy on Free Cash Flow and Profitability Towards Firm Value

Authors

  • G.A Sri Oktaryani FEB UNRAM
  • Siti Sofiyah Abdul Mannan FEB UNRAM

DOI:

https://doi.org/10.29303/jmm.v7i3.311

Abstract

This study is aimed to determine the moderating effect of Dividend Policy on Free Cash Flow and Profitability towards Firm Value. This study use Moderate Regression Analysis (MRA) as tool to analyze the moderating effect of Dividend Policy on the sample tested. Sample are chosen by using purposive sampling method from all manufacture firms that listed on Indonesian Stock Exchange throughout 2010-2015 which offered cash dividend to their shareholders. By using panel data, the findings show that Free Cash Flow and Profitability themselves have significant effect on Firm Value. But conversely, each Free Cash Flow and Profitability does not have significant effect on Firm Value after being moderated by Dividend Policy. It is because the direct effect of Free Cash Flow and Profitability toward Firm value is bigger than the indirect effect. The results indicate that Dividend Policy is just predictor moderation in this case.Dividend Policy, Free Cash Flow, Profitability, Firm Value, Manufacture, MRA

Downloads

Published

2018-09-15

How to Cite

Oktaryani, G. S., & Mannan, S. S. A. (2018). The Moderating Effect of Dividend Policy on Free Cash Flow and Profitability Towards Firm Value. Jurnal Magister Manajemen, 7(3), 1–12. https://doi.org/10.29303/jmm.v7i3.311

Issue

Vol. 7 No. 3 (2018): JMM September 2018

Section

Articles

License

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a CC BY 4.0. This license allows authors to use all articles, data sets, graphics, and appendices in data mining applications, search engines, web sites, blogs, and other platforms by providing an appropriate reference. The journal allows the author(s) to hold the copyright without restrictions and will retain publishing rights without restrictions.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in JMM.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).