MODERATING EFFECT OF DIVIDEND PAYOUT RATIO ON FIRM VALUE

Abstract

This study is designed to analyze the effect of profitability, capital structure and ownership structure on firm value with moderated dividend payout ratio. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange in the 2018-2022 period with sampling techniques using purposive sampling with a total of 125 data. The results of this study indicate that profitability has a significant positive effect on firm value, while capital structure and ownership structure do not have a significant effect on firm value. Dividend payout ratio strengthens the positive effect of capital structure on firm value, but dividend payout ratio does not moderate the effect of profitability and ownership structure on firm value. The results of this study provide an overview for the management of manufacturing companies with the distribution of dividends can increase the value of the company in terms of the amount of liabilities and equity so that the objectives of investors can be met.