MENINGKATKAN KESEJAHTERAAN PEMEGANG SAHAM MELALUI KEBIJAKAN DIVIDEN BERKOMITMEN PERTUMBUHAN PERUSAHAAN

Abstract

This study aims to examine the role of a firm's growth-committed dividend policy in mediating financial effectiveness on firm value. Profitability, which shows the financial effectiveness of a company, has an inconsistent effect on company value. To mitigate this gap, it is proposed that a dividend policy is committed to company growth as a mediator for the influence of profitability on firm value. For this reason, a sample consisting of all manufacturing companies listed on the Indonesia Stock Exchange for the 2010-2017 period and which have met the criteria will be analyzed using SEM-WarpPls 5.0. The results obtained show that the dividend policy committed to company growth is able to mediate the influence of profitability in increasing firm value. These findings support the signaling theory and the Pecking order theory that profitability as a proxy for financial performance can further increase firm value by implementing a dividend policy committed to company growth.