Dividend Policy and Firm Value: The Impact of Earning Management and Financial Performance

Author(s): Yoosita Aulia; Dian Ferriswara; Sri Handini; Alberta Esti Handayani; Nurhayati; Vivi Ambarwati; Syafril Rizal Hariyadi; Rio Firmansyah
Institution: Dr. Soetomo University
Category: Article, IJMMU

Topics: Earning Management; Financial Performance; Dividend Policy; Firm Value

Through this research, we aim to explain the impact of earnings management on firm value and dividend payment, and the impact of financial performance on firm value and dividend payment. Additionally, this research seeks to determine whether dividend policy contributes to firm value. The research uses an explanatory approach. The sample consists of mining companies listed on the Indonesia Stock Exchange that have published financial statements and distributed dividends from 2019 to 2023. Data analysis is conducted using Partial Least Squares (PLS). The findings reject two hypotheses: earnings management does not significantly contribute to firm value and has a negative impact on dividend payment. Another result shows that financial performance contributes to both firm value and dividend payment. Furthermore, firm value is influenced by dividend payment.

Article can be downloaded here >>Dividend Policy and Firm Value: The Impact of Earning Management and Financial Performance | Aulia | International Journal of Multicultural and Multireligious Understanding