The Effects Of Dividend Policy On The Influence Of Financial Performance To The Firm Vlue Of Banking Companies Which Are Listed In Indonesia Stock Exchange



Firm value can gives stakeholders maximum prosperity when the stock price increases. When the stock price of a company increases, the prosperity of the stakeholders is increases maximally as well. The company should be able to allocate their nett profit appropriately in order to fulfill two different interests. The purpose of this research is to test the effect of dividend policy on the influence of financial performance to the firm value, the financial performance in this research applies liquidity ratio, leverage, and profitability.

The population is the entire companies which are listed in Indonesia Stock Exchange (IDX). The sample collection technique has been carried out by using purposive sampling and based on the determined criteria there are 7 samples of banking company which are consecutively active in the capital market activity, and they do not experience any loss and share their dividend during the years of 2009-2013. The research data is the secondary data which has been obtained from Indonesia Stock Exchange (www. idx. co. id) in this case the data is from 2009-2013 financial data. The multiple linear regerssions analysis technique with the SPSS (Statistical Product and Service Solutions) application is used as the research hypothesis test.

The result of the research shows that the research variables have been normally distributed, all independent variables in this research do not have any multicolinearity symptoms, heteroscedasticity problem does not occur in the regressions model, and there is no autocorrelation. The result of hypothesis test describes that:

1) partially it has been found that liquidity has significant influence to the firm value.

2) Leverage variable does not have any influence to the firm value.

3) profitability variable has significant influence to the firm value.

4) dividend policy does not have any effect on the influence of liquidity to the value.

5) dividend policy does not have any effect to the influence of leverage to the firm value.

6) dividend policy does not have any effect to profitability influence to the firm value.


Keywords: Liquidity, Leverage, Profitability, Firm Value, and Dividend Policy