This study investigates the potential factors explaining the inconsistent relationship between profitability and firm value. Specifically, it examines whether dividend policy contributes to the profitability–firm value relationship and determines the form of the moderating variables. We use a unique data set from the Indonesian capital market, with sustainable and responsible investment (SRI)-KEHATI-listed firms from 2010 to 2019. Adopting hierarchy moderating analysis, the results show a positive direct relationship between profitability and firm value. Moreover, the profitability–firm value relationship becomes stronger with a higher dividend policy ratio. We complement this with evidence that the dividend policy plays a role as a pure moderator in more sustainable and responsible firms. A sensitivity battery analysis and the endogeneity concern show consistent results as the baseline model, implying that the model is robust to different conditions. Additional tests revealed that the dividend policy is more prominent in low-leverage enterprises, low-intensity advertising firms, and during the financial service authority’s post-dividend policy regulation phase. The implication of our study is that corporate policy and country regulation play a role as a potential competitive strategy to increase shareholder value for SRI-KEHATI-listed firms.

This study aims to examine the influence of capital structure towards firm value. The sample of this research consists of 101 manufacture companies listed in the Indonesian Stock Exchange during the period 2012-2015. The results of this study indicate that the higher the capital stucture with Debt to Equity Ratio (DER) and Long term Debt to Asset Ratio (LDAR) are indicators of a higher firm value, while lower Long term Debt to Equity Ratio is an indicator of a lower firm value. The study has found a positive correlation between Debt to Equity Ratio (DER) and Long term Debt to Asset Ratio (LDAR) to firm value, and a negative correlation of Long term Debt to Equity Ratio (LDER) to firm value. However, the capital structure with Debt to Asset Ratio (DAR) did not seem to have an influence on the firm value.

The purpose of this study is to investigate the cause factors of non-GAAP earnings management from Fraud Diamond Theory (FDT) perspective. FDT is a theory, which widely used in auditing area to explain the cause factors of fraud in companies. Using four FDT indicators, which are stress, opportunity, rationalization, and capabilities, this research investigates 42 companies from non-banking and non-financing industries during 2010 and 2013. As the results of logistic regression analyses, we find that opportunity and capabilities influence managers to conduct non-GAAP earnings management. On the other hand, stress and rationalization have the different results. The findings show that in Indonesia, opportunity and capabilities are two aspects that should be given a strong attention from Indonesian regulator in order to reduce non-GAAP earnings management.

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