The Moderating Role of Investment Opportunity Set on The Firms’ Dividend Decisions

Raharja, Bayu Sindhu and Anwar, Qosim Khoiri and Nugroho, Arif and Aligarh, Frank (2020) The Moderating Role of Investment Opportunity Set on The Firms’ Dividend Decisions. In: ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia.

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Abstract

This study examines the factors that influence the firms in taking dividend policy. The factors studied in this study are the firms' profitability and firms' growth. Beside of that, it also examines the moderating effect of investment opportunity sets concerning company profitability and company growth with dividend decisions. The sample of this study are manufacturing firms which listed on the Indonesia Stock Exchange. The methods used to analyse this moderating effect is Moderated Regression Analysis (MRA) and Chow-test. The results indicate that profitability has a positive and significant effect on dividend decisions. Besides, this study also proves that company growth has a significant negative impact on dividend decisions. Likewise, with the introduced moderation effect in this study, the results of the analysis show evidence that there is a moderating effect of the investment opportunity set (IOS) in the relationship of company profitability, the growth of the company with dividend decisions.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: firm growth firm performance agency theory
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: EAI Editor IV
Date Deposited: 05 May 2021 09:08
Last Modified: 05 May 2021 09:08
URI: https://eprints.eudl.eu/id/eprint/2792

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