THE EFFECT OF INVESTMENT DECISIONS, FUNDING DECISIONS AND DIVIDEND POLICY ON COMPANY VALUE Food and Beverage Sub Sector Listed on the Indonesia Stock Exchange 2016 – 2020 Period

Abstract

Abstract

Purpose – This article investigates the effect of investment decisions, funding decisions and
dividend policies on firm value in the food and beverage sub-sector listed on the Indonesia
Stock Exchange for the 2016 – 2020 period.
Design/methodology/approach – We use a sample selection technique in this study is a
purposive sampling method with sample criteria, namely companies in the food and beverage
sub-sector listed on the Indonesia Stock Exchange (IDX) for the period 2015-2020. 2015 and
companies that distributed dividends during the 2015-2019 period, as many as 7 companies.
Findings - The results show that investment decisions (PER) have no significant effect on firm
value while funding decisions (DER) have a significant positive effect on firm value. Dividend
policy (DPR) has a significant positive effect on firm value. Simultaneously, investment
decisions (PER), funding decisions (DER) and dividend policy (DPR) have a significant
positive effect on firm value in the food and beverage sub-sector listed in Indonesia Stock
Exchange Period 2016 – 2020.
Research limitations/implications – Our findings show that the rise and fall of firm value is not
influenced by investment decisions. while funding decisions and dividend decisions partially
greatly affect the rise and fall of firm value. This information is very important for investors in
investing their funds.
Originality/value – This study improves understanding of the relationship and influence of
investment decisions (PER), funding decisions (DER), dividend policy (DPR) on firm value
partially or simultaneously.
Keywords investment decision (PER), funding decision (DER), dividend policy (DPR), firm
value.
Paper type Research paper