Capital Structure and Corporate Governance: Shaping Company Value through Dividends

This study aims to examine the effect of profitability, liquidity, capital structure, and dividend policy on firm value with good corporate governance as a moderating variable. The population of this study consists of manufacturing companies listed on the Indonesia Stock Exchange for the period 2017-2022. The data used are secondary data, and the research employs purposive sampling. The total population consists of 196 companies, and 30 companies that meet the criteria were selected. The data analysis methods used in this study include descriptive statistical analysis, hypothesis testing, and moderated regression analysis (MRA) using the Eviews 12 data analysis software. The research results went through several stages, starting with the determination of the model to be used. The results of the Chow test and Hausman test, which compared the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM), indicated that the best model selected was the Fixed Effect Model (FEM). From this model, the results of the moderation regression test showed that only the variables of profitability and capital structure on firm value could be moderated by Good Corporate Governance (GCG), which is referred to as pure moderation. For the variables of liquidity, capital structure, and dividend policy, none of them could be moderated by GCG.

This study investigates the influence of capital structure, profitability, and good corporate governance on firm value in the Indonesian property, real estate, and construction sectors. The research aims to provide empirical evidence on how financing decisions, financial performance, and governance mechanisms affect firm value in a post-pandemic period when the sector faces significant challenges. The study used purposive sampling to select 57 firms listed on the Indonesia Stock Exchange during 2021–2023. Multiple linear regression analysis was applied to examine the relationship between the variables. The findings reveal that capital structure, measured by the debt-to-equity ratio, has a significant positive effect on firm value, while profitability, measured by return on assets, does not influence firm value. In contrast, the presence of independent commissioners as a proxy for good corporate governance significantly enhances firm value. Compared to previous studies, the results show a divergence in the role of profitability, suggesting that investor valuation is not always aligned with accounting performance indicators. The study highlights the importance of governance structures and optimal financing decisions in maintaining firm value during periods of economic uncertainty. The research concludes that future studies should incorporate additional variables such as firm size or dividend policy and apply more advanced analytical methods to provide deeper insights.

Avoiding Distortion in Corporate Valuation Litigation: An Application of Discounted Cash Flow

This study aims to identify and examine the factors that influence firm value in consumer goods industry companies listed on the Indonesia Stock Exchange (IDX) and to investigate the role of profitability as a moderating variable. The factors tested in this study include capital structure, liquidity, and dividend policy. The research utilizes secondary data. The population consists of 51 consumer goods companies listed on the IDX. The sample was selected using purposive sampling, resulting in 18 companies for the period 2020-2023. The analytical tool used in this study is Moderated Regression Analysis (MRA), performed with the assistance of EViews 10 software. The results show that capital structure and liquidity have a positive and significant effect on firm value, while dividend policy does not have a significant effect on firm value. Profitability does not moderate the relationship between capital structure and firm value, but it does moderate the relationship between liquidity and firm value. Furthermore, profitability does not moderate the relationship between dividend policy and firm value. Keywords: capital structure, liquidity, dividend policy, firm value, profitability

This study examines the role of dividend policy in moderating the effect of capital structure, profitability, and liquidity on firm value. A quantitative approach was used, with Tobin's Q to measure firm value, Debt Equity Ratio (DER) for capital structure, Return on Assets (ROA) for profitability, and Current Ratio (CR) for liquidity. Dividend policy was measured using the Dividend Payout Ratio (DPR) as a moderating variable in the relationship between capital structure, profitability, and liquidity with firm value. Data was obtained from the annual financial statements of companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. Multiple linear regression analysis was applied to test the relationships among these variables. The results show that dividend policy plays a role in moderating the relationship between capital structure and firm value. However, the effect of dividend policy on the relationship between profitability and firm value was not significant. Liquidity also did not show a significant effect on firm value in this model. This study emphasizes the importance of dividend policy in the efficient management of capital structure to enhance firm value. These findings provide guidance for strategic decisions in determining dividend policies to improve financial performance.

The impact of capital structure, good corporate governance, and intellectual capital on financial performance and firm value is examined in this study. The impact of financial performance on the value of a company. Examine the impact of capital structure, corporate governance, and intellectual capital on a company's financial performance. There were 193 financial reports in this study, with a sample size of 62 financial reports. Purposive sampling was used as a sampling technique. SEM-PLS is the analysis method used. The findings show that capital structure, good corporate governance, and intellectual capital have a positive and significant impact on financial performance and firm value. Firm value is influenced by financial performance in a positive and significant way. Good corporate governance and intellectual capital have a small but significant impact on firm value through financial performance. Through financial performance, capital structure has a negative and insignificant effect on firm value.

The impact of capital structure, good corporate governance, and intellectual capital on financial performance and firm value is examined in this study. The impact of financial performance on the value of a company. Examine the impact of capital structure, corporate governance, and intellectual capital on a company's financial performance. There were 193 financial reports in this study, with a sample size of 62 financial reports. Purposive sampling was used as a sampling technique. SEM-PLS is the analysis method used. The findings show that capital structure, good corporate governance, and intellectual capital have a positive and significant impact on financial performance and firm value. Firm value is influenced by financial performance in a positive and significant way. Good corporate governance and intellectual capital have a small but significant impact on firm value through financial performance. Through financial performance, capital structure has a negative and insignificant effect on firm value

Objective - The study examines the influence of profitability, leverage, firm size, and the proportion of independent commissioners on a firm's value with dividend policy as a moderating variable of the top 100 listed companies in Indonesia. Methodology/Technique – The sample was selected using purposive sampling, which consists of publicly-traded non-finance companies listed on the Kompas 100 Index and preparing audited financial statements for the year ended December 31 using Rupiah as its reporting currency. The secondary data were analyzed with moderated regression analysis method. Findings - The result indicated that profitability, leverage, and proportion of independent commissioners significantly enhance firms' value and strengthen these conditions by dividend policy. This study also finds that company size does not influence the value of firms. Novelty - This study contributes to knowledge of a firm's value using dividend policy as a variable that moderates the effect of profitability, leverage, firm size, and proportion of independent commissioners toward the value of firms. The implication of this study could guide a company's corporate action to create a balanced return on the firm's value between existing and potential investors, giving a positively impacting Type of Paper: Empirical JEL Classification: Keywords: Corporate Governance, Payout Policy, Firm Size, Value Of Firms, Financing Policy, Profitability. Reference to this paper should be referred to as follows: Imanuel, L.F; Suryaningsih, R. (2022). Determinant of Firm's Value: Empirical Evidence from Top 100 Listed Companies in Indonesia, Acc. Fin. Review, 7(2), 88 – 96. https://doi.org/10.35609/afr.2022.7.2(2)

This research attempts to investigate the effects of funds structure, firm growth, and profitability on business value, using sustainability reporting and good corporate governance (GCG) as moderating factors. Using secondary data from the financial statements and sustainability reports of consumer products businesses listed on the Indonesia Stock Exchange (IDX) between 2020 and 2024, the study takes a quantitative method. Purposive sampling was used to choose the sample, yielding 15 firms with 75 firm-year observations overall. Regression analysis of panel data was used with EViews software. According to the empirical findings, firm value is positively and significantly impacted by capital structure and business expansion, but profitability has no discernible impact. Additionally, the relationship between capital structure and company growth on firm value is found to be moderated by good corporate governance (GCG), although the association between profitability and firm value is not moderated by GCG. Sustainability reporting, on the other hand, does not mitigate the impact of profitability on firm value; rather, it moderates the relationship between capital structure and firm growth on firm value.

Purpose: This research examines the impact of good corporate governance (GCG) and dividend policy on the firm value of non-financial companies listed on the Indonesian Stock Exchange (IDX).Method: The study focuses on 803 non-financial firms listed on the IDX during 2021 to 2023. From this population, a sample of 45 firms was selected using a purposive sampling method. The research utilized secondary data derived from financial statements of the sampled firms and employed panel data regression analysis conducted with EViews 12 software.Result: The findings reveal that institutional ownership significantly and positively affects firm value. Conversely, managerial ownership exerts a significant negative impact on firm value. Meanwhile, the proportion of independent commissioners and dividend policy show a positive but statistically insignificant effect on firm value.Practical Implications for Economic Growth and Development: The study highlights that good corporate governance, particularly institutional ownership, can enhance firm value and potentially driving economic growth by improving market confidence and investment. Additionally, understanding the relationship between dividend policy and firm value can inform better financial strategies that foster long-term stability and growth in non-financial sectors.

Purpose: This study examines the effects of corporate social responsibility (CSR), dividend policy, leverage, and profitability on firm value and investigates whether good corporate governance—proxied by the board of commissioners—moderates these relationships.Method: This research employs a quantitative research design using secondary data derived from the annual reports and sustainability reports of manufacturing firms listed on the Indonesia Stock Exchange (IDX) over the 2021–2023 period. Using purposive sampling, 21 firms were selected, yielding 63 firm-year observations. The data were analyzed using multiple linear regression and Moderated Regression Analysis (MRA).Result: The findings show that leverage and profitability significantly influence firm value, whereas CSR and dividend policy do not have a significant effect. The board of commissioners significantly moderates the relationship between leverage and firm value but does not moderate the relationships of CSR, dividend policy, or profitability with firm value.Practical Implications for Economic Growth and Development: These results highlight the importance of strengthening corporate governance, particularly in capital structure oversight, to support corporate stability and enhance investor confidence—factors that can contribute to sustainable economic growth.Originality/Value: This study advances the corporate finance and governance literature by integrating CSR disclosure, dividend policy, financial performance, and governance structure within a single moderating framework. Using evidence from Indonesia’s post-pandemic manufacturing sector, it provides insight into how governance mechanisms shape the effectiveness of financial decisions in enhancing firm value.

Penelitian ini bertujuan untuk mengetahui hubungan dan pengaruh variabel profitabilitas, dan kebijakan dividen terhadap nilai perusahaan serta variabel struktur modal sebagai pemediasi. Populasinya adalah semua perusahaan BUMN yang terdaftar di BEI selama tahun 2015 – 2018. Teknik pengambilan sampel menggunakan purposive sampling. Analisis data digunakan regresi dan sobel test. Hasil penelitian ini membuktikan bahwa profitabilitas tidak berpengaruh terhadap nilai perusahaan tetapi berpengaruh terhadap struktur modal, kebijakan dividen berpengaruh terhadap nilai perusahaan dan juga terhadap struktur modal, struktur modal tidak berpengaruh terhadap nilai perusahaan, struktur modal tidak dapat memediasi hubungan profitabilitas dan kebijakan dividen terhadap nilai perusahaan.
 Keywords : nilai perusahaan, struktur modal, profitabilitas, kebijakan dividen

The main objective of the study is to examine the impact ofprofitability, dividend policy, and capital structure on firms value inIndonesia Stock Exchange (IDX). Population in this study are publiccompany listed in Indonesia Stock Exchange during 2009-2012. The datawere then analyzed by the multiple regression analysis, using the SPSSProgram version 16.0. The results of this study show that (1) profitabilityhave positive and significant influence on capital structure, (2) profitabilityhave negative and significant influence on capital structure, (3) profitabilityhave positive and significant influence on firm value, (4) dividend policyhave not significant influence on firm value, (5) capital structure havenegative and significant influence on firm value, (6) profitability havesignificant influence on firm value weather capital structure, (7) devidentpolicy have significant influence on firm value weather capital structure, (8)by simultan profitability, dividend policy, and capital structure havesignificant influence on firm value

General Background The intense competition in the industrial sector necessitates a focus on maximizing firm value to attract investors. Specific Background Profitability, liquidity, and company growth are key determinants of company value, with capital structure playing a crucial financial role. Knowledge Gap Prior studies show conflicting results regarding the direct influence of these financial ratios on firm value, creating a need for a clearer causal model. Aims This study examines the mediating role of capital structure in the relationship between profitability, liquidity, company growth, and firm value in the Indonesian Food and Beverages sector (2019-2022). Results Findings show that while profitability directly affects firm value, liquidity and company growth do not. Crucially, capital structure successfully mediates the relationship between all three independent variables and firm value. Novelty This research contributes by incorporating company growth and capital structure as a mediator to reconcile the existing empirical inconsistencies. Implications The results highlight that optimal capital structure management is vital for the F&B sector, proving to be the essential link for profitability, liquidity, and growth to ultimately increase company value. Highlights Profitability is the only variable with a direct positive effect on firm value. Capital structure successfully mediates the link between all independent variables and firm value. Liquidity and Company Growth require capital structure to positively influence firm value. Keywords: Capital Structure, Profitability, Liquidity, Company Growth, Company Value

The mining sector plays a vital role in Indonesia’s national economy, making its financial performance an important subject for deeper analysis through multiple financial indicators. This study investigates the effects of capital structure, profitability, firm size, and dividend policy on firm value, with investment decisions introduced as a moderating variable. The sample consists of 26 mining companies listed on the Indonesia Stock Exchange during the 2021–2024 period, selected using purposive sampling, resulting in 104 firm-year observations. Data were analyzed using multiple linear regression and moderated regression analysis with SPSS version 26. The findings reveal that capital structure has no significant impact on firm value. In contrast, profitability exerts a significant positive effect, while firm size and dividend policy both show significant negative effects. Regarding moderation, investment decisions do not moderate the relationship between capital structure and firm value but negatively moderate the effect of profitability, strengthen the effect of firm size, and negatively moderate the effect of dividend policy. These results provide new insights into the dynamics of financial decision-making in Indonesia’s mining sector and highlight the nuanced role of investment choices in shaping firm value.