THE IMPACT OF FINANCIAL PERFORMANCE ON FIRM VALUE IN INDONESIA STOCK EXCHANGE WITH DEVIDEND POLICY AS MODERATION VARIABLE

Abstract

The development of property business in Indonesia today can be said to be
very advanced. It can be seen from the rampant construction of residential
houses, apartments, and offices. This development also encourages the growth of
new developers. In addition, the property has also become a major alternative to
investing. However, in reality, the development of share prices in the sector of
Property, Real Estate & Building Constructions has an average index of the
lowest when compared to other sectors. It becomes interesting to study, because
of the development sector of the Property, Real Estate & Building Construction is
one indicator of a country's economic growth. Measurement of the performance of
the company is one of the indicators used by investors to assess a company on the
market price of such shares on the stock exchanges in Indonesia.
The purpose of this study was to obtain empirical evidence about the
impact of the financial performance of the company's value with dividend policy
as a moderating variable. The populations in this research were companies
financial statements listed in the Indonesia Stock Exchange. Property company
listed on the Indonesia Stock Exchange as many as 57 companies. Companies that
dividend payout ratio is positive. After it population limitation to 38 company
property. Data collected was processed by using multiple linear regression
techniques to test the interaction (Moderate Regression Analysis).
The results showed that there is a significant impact of financial
performance towards the corporate value. At the same time, the dividend policy as
variable moderating also has a positive effect on the firm value. The implication
of this research is it can put forward some suggestions, firstly, financial
performance requires attention both investors and potential investors to assess a
company. Secondly, property companies need to pay attention to liquidity and
leverage in order to have the financial flexibility in achieving a good firm value
for external parties.

Keywords: financial performance, corporate value, and dividend policy