The Effect of Funding and Investment Decisions Toward Company Value With Dividend Policy as the Intervening Variable on Manufacturing Sector Listed in Indonesia Stock Exchange

Abstract

Company value reflects the current value of the desired revenue in the future and the indicator for the market in assessing the company holistically. Implementing the financial management function is the way that can be done to achieve the company's objectives. The optimal combination of management decision can optimize company value that will affect shareholder wealth. The funding decision is a very significant decision for the company because it involves the acquisition of funding sources for operational activities and to finance the company's investment activities. In this case, funding decision and investment decision are interconnected. Funding sources within the company can be obtained from inside or outside the company. KEY WORDSFunding decision, investment decision, dividend policy, company.

The Effect of Investment Decision, Financing Decision, Dividend Policy on Firm Value

“…Based on research conducted by Tanto (2019), found that investment decisions have a significant effect on firm value. The result of this study is also supported by Utami & Darmayanti (2018) and Putri & Yuliani (2018) that found investment decisions with positive and significant effect on firm value.…”

“…Muharti and Anita's research (2017) stated that financing decisions have a positive effect on firm value. Furthermore, the research conducted by Putri, Isnurhadi & Yuliani (2018) said that financing decisions has a positive and significant effect on firm value.…”

“…There are several similar studies that have been conducted by other researchers, but there are differences of opinion between the results obtained. Research conducted by Putri et al, (2018), Darmayanti et al, (2018 states that investment decisions have a positive and significant effect on firm value. On the other hand, research conducted by Saputri et al (2016) states that investment decisions have no effect on firm value.…”

“…On the other hand, research conducted by Saputri et al (2016) states that investment decisions have no effect on firm value. Research conducted by Putri, Isnurhadi & Yuliani (2018) show that financing decision, investment decision, and dividend policy have a positive and significant effect on firm value. However, this is contrary to the research conducted by Widyakto (2015) which states that debt policy has no effect on firm value.…”