Pengaruh Ukuran Perusahaan Pada Kebijakan Dividen dengan Kapitalisasi Pasar Sebagai Variabel Mediasi dan Nilai Perusahaan Sebagai Variabel Moderasi

Abstract

Indonesia's economic growth is supported by many companies, one of which is the banking sector. A good company must pay attention to various important factors in managing its operations, one of which is a dividend policy to attract investors to invest their funds. This study aims to re-examine and confirm the effect of firm size on dividend policy with market capitalization as a mediating variable and firm value as a moderating variable. The population in this study is state-owned banks in Indonesia in the 2010-2019 period. Determination of the sample using a non-probability method with purposive sampling technique and obtained as many as 4 banks with a total of 40 observations. The analysis technique used is path analysis. Analysis of the data in this study using SmartPLS 3 software. The results of this study indicate that firm size has a positive effect on market capitalization, firm size has a positive effect on dividend policy, market capitalization has a positive effect on dividend policy, market capitalization mediates the effect of firm size on dividend policy and value firms moderate the effect of market capitalization on dividend policy. Companies in the banking sector are advised not only to pay attention to internal factors that can influence dividend policy but also to the movement of macroeconomic factors. The researcher suggests examining other internal and external factors that are thought to influence dividend policy and market capitalization for further research.

Correlation Among Dividend Policy and Market Value of Equity In Banking Industry: A Residual Income Approach

“…The greater the company's total assets will increase the interest of investors to buy shares; thus, it affects the share price and increases the market value of equity. These results align with research by Bagiana & Agustina (2021); A. R. Budagaga (2020);and Velicia et al (2020).…”

“…The large dividend payout ratio will attract investors to buy company shares, thereby increasing the market value of the company's equity. The results of this study are in line with research by Bagiana & Agustina (2021) which stated that market capitalization has a positive effect on dividend policy.…”

“…The market value of the equity is calculated based on the share price and the outstanding amount. Research by Bagiana & Agustina (2021) stated that companies with large market capitalization usually have large sizes both in terms of assets and profits; therefore, the higher market capitalization will increase dividend payments to shareholders. This finding shows that the higher the dividend payout ratio will increase the market value of equity.…”

“…The decrease in book value impacts the increase in the market value of equity. The company's book value reflects the company's intrinsic value, which is an important consideration for investors (Bagiana & Agustina, 2021). When stock prices fall, it will have an impact on decreasing the market value of equity; thus, it will impact the book value of the company.…”

Ownership Structure and Firm Performance: The Mediating Role of Firm Size

“…Firm size is quantified by taking the natural logarithm (ln) of a company's total assets during a specific period, a method commonly used to address variations in company asset data. According to Bagiana and Agustina (2021), the formula for this measure is Company Size=Ln (Total Company Assets).…”