The Effect of Dividend Policy on the Value of Manufacturing Companies in Indonesia

Abstract

In the Manufacturing Industry Companies that are listed on the IDX over the period of 2017-2022, the purpose of this study is to determine the influence that dividend policy has on the firm value of such companies. The purposive sampling approach was used to gather the sample for this research. The sample for the research was comprised of 18 different companies and was selected based on the criteria that were provided. The quantitative method coupled with the analysis of simple linear regression is the approach that was taken to analyze the data. It is known, on the basis of the findings of the research, that dividend policy has a positive and significant effect on the value of the company. The T value is 43.50, and the significance value is 0.000, which indicates that this is the case. With a value of 0.102 for the coefficient of determination, we may deduce that 10.2% of the variance in firm value can be accounted for by the dividend policy variable, while the remaining 89.8% of the variance can be accounted for by other variables that are not included in the study model.