The Effect of Investment, Financing, Dividend Decisions, Firm Growth, and Agency Costs on Firm Value

R. Meutia, Erlina, R. Bukit, K. A. Fachrudin

2019

Abstract

The main objective achieved through financial management is to increase the firm value in a sustainable manner. Several factors that are considered to give effect on the achievement of value including investment decisions, financing decisions, dividend decisions, firm growth, and agency costs. This study empirically analyzes the effects of these factors on the firm value. 108 manufacturing companies listing at IDX were selected purposively as research objects periode 2008-2017. Secondary data in the form of financial statements were analyzed using multiple regression analysis. The research findings prove that the five independent factors analyzed have a positive and significant effect on firm value. Furthermore, dividend decisions are a factor that has the greatest influence on the value compared to other factors. The findings state that the achievement of higher firm value is relatively more determined by how the management makes policies related to composition between the portion of profit that is distributed as dividends to shareholders to the portion of profits reinvested or kept as a reserve in the firm as retained earning.

Paper Citation

in Harvard Style

Meutia R., Erlina., Bukit R. and Fachrudin K. (2019). The Effect of Investment, Financing, Dividend Decisions, Firm Growth, and Agency Costs on Firm Value. In Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC, ISBN 978-989-758-498-5, pages 204-208. DOI: 10.5220/0009201502040208

in Bibtex Style

@conference{ebic19,
author={R. Meutia and Erlina and R. Bukit and K. A. Fachrudin},
title={The Effect of Investment, Financing, Dividend Decisions, Firm Growth, and Agency Costs on Firm Value},
booktitle={Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,},
year={2019},
pages={204-208},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009201502040208},
isbn={978-989-758-498-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,
TI - The Effect of Investment, Financing, Dividend Decisions, Firm Growth, and Agency Costs on Firm Value
SN - 978-989-758-498-5
AU - Meutia R.
AU - Erlina.
AU - Bukit R.
AU - Fachrudin K.
PY - 2019
SP - 204
EP - 208
DO - 10.5220/0009201502040208