THE EFFECT OF GROWTH, PROFITABILITY, LEVERAGE, AND DIVIDEND ON COMPANY VALUE IN THE BUILDING AND NON-BUILDING CONSTRUCTION SUB -SECTORS AT BEI 2014 - 2020
Keywords:
Growth, Profitability, Leverage, Dividend, Regression, Panel Data, Construction SectorAbstract
The era of the government of President-elect Joko Widodo in the two periods of Indonesian government in 2014 and 2019 brought fresh air to the infrastructure sector because one of the government's visions was to carry out development evenly, this had a positive impact on the construction industry. However, in 2020 when the Covid-19 pandemic began to hit Indonesia, all industrial sectors experienced a decline, without exception the construction sector. This study aims to determine the effect of company growth, profitability, leverage, and dividends on company value in the building and non-building construction sub-sector in 2014 - 2020. This period includes 3 different situations. The samples used were 9 issuers in the building and non-building construction sub-sector that met the criteria. The data used were time series data. The approach in this study is through descriptive statistical analysis and panel data regression analysis. The results obtained from this study are that growth has no effect and is negative on firm value, because when a company's growth moves fast it will have an impact on a decrease in firm value. Profitability has a positive and significant effect on firm value because the increase in company profits makes the investment return contribution high. Leverage has a positive and significant effect on firm value when DAR increases, it will make a positive signal that the company is developing its business. Dividends have a positive and significant effect on firm value when a high DPR will maximize firm value. Dividend distribution can reduce the effect of income uncertainty felt by investors.
Downloads
References
Abbas, DS, Dillah, U., Sutardji. 2020. Factors Affecting Company Value. Journal of Accounting and Management, 17(1)
Anshori, M., Iswati, S. 2017. Quantitative Research Methodology. Surabaya: Airlangga University Press
Brigham, EF & Houston, JF 2006. Fundamentals of Financial Management (Edition X). Jakarta: Salemba Empat
Brigham, EF & Houston, JF 2010. Fundamentals of Financial Management, Book One. Jakarta Tenth Edition: Salemba Empat
Clayman, MR, Fridson, MS, Troughton, GH 2012. Corporate finance – A practical approach. New Jersey: Wiley-Blackwell
Fajaria, AZ & Isnita. 2018. The Effect of Profitability, Liquidity, Leverage and Firm Growth of Firm Value with its Dividend Policy as a Moderating Variable. International Journal of Managerial Studies and Research (IJMSR), 6(10)
Febriandina, Y. Sinaga, B., Andati, T. 2016. Analysis of Factors Influencing Stock Prices in the Building Construction and Non-Building Construction Subsectors on the Indonesia Stock Exchange in 2012-2016. thesis. Bogor Agricultural University Postgraduate School
Gursida, H. 2017. The Influence of Liquidity, Solvency, and Exchange Rate to Company Profitability and Its Implications to Stock Price at Mining Sector Company. Journal of Applied Management and Business, 3(2)
Husna, A. & Satria, I. 2019. Effects of Return on Assets, Debt to Asset Ratio, Current Ratio, Firm Size, and Dividend Payout Ratio on Firm Value. International Journal of Economics and Financial Issues, 9(5)
Harahap, IM, Septiani, I., Endri, E. 2020. Effect of Financial Performance on Firms' Value of Cable Companies in Indonesia. Growing Science Accounting 6.
Ismiyanti, F. & Mahadwartha, PA 2005. Test the Differentiating Factors of Dividend Policy: Discriminant Analysis. Management & Business, 4(1)
Juwita, Harjadi, D., Purnama, D. 2021. Total Assets, Business Risk, Asset Growth and Profitability on Stock Prices. MEDIKONIS: Journal of Communication and Business Media, 12(2)
Cashmere. 2013. Analysis of Financial Statements. Jakarta: Rajawali Press
Kholis, N., Kurniawati, L. 2019. Factors Affecting the Dividend Payout Ratio (Empirical Studies of Companies Listed on the LQ45 Index on the IDX in 2015-2017). National Seminar and the 6th Call for Sharia Paper. Muhammadiyah Surakarta university.
Kurniasih, T., Sari, MMR 2013. Effects of Return On Assets, Leverage, Corporate Governance, Company Size, and Fiscal Loss Compensation on Tax Avoidance. Economic Studies Bulletin, 18(1).
Kusuma, GIS, Suhadak, Arifin, Z. 2012. Analysis of the Influence of Profitability and Growth Rate on Capital Structure and Firm Value (Studies on Real Estate and Property Companies Listed on the Indonesia Stock Exchange (IDX) Period 2007- 2011). Poor.
Lang, LHP, Stulz, RM, and Walkling. 1989. Managerial Performance, Tobin's q, and the Gains from Successful Tender Offers. Journal of Financial Economics (September), 137-154
Mahatma & Wirajaya, M. 2014. Effect of Capital Structure, Profitability, and Firm Size on Firm Value. Udayana University Accounting, 4(2)
Majanga, BB 2015. The Dividend Effect on Stock Price-An Empirical Analysis of Malawi Listed Companies. Accounting and Finance Research, 4(3).
Makiwan, G. 2018. Analysis of Leverage Ratios to Predict Profit Growth of Manufacturing Companies in the Food and Beverage Sub-Sector Listed on the Indonesia Stock Exchange for the 2011-2015 Period. Journal of Business, Management and Informatics, 15(2).
Maryaningsih, N., Hermansyah, O., Syafitri, M. 2014. The Influence of Infrastructure on Indonesia's Economic Growth. Monetary Economics and Banking Bulletin, 17(1)
Muchson, M. 2017. Descriptive Statistics. Guepedia Publisher
Mujino, Wijaya A. 2021. The Effect of Dividend Policy, Debt Policy, Profitability, Asset Structure, and Company Size on the Value of Manufacturing Companies Listed on the Indonesia Stock Exchange 2013-2019. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(2).
Novitasari, R., Krisnando. 2021. The Effect of Capital Structure, Company Growth, and Firm Size on Company Value in Consumer Goods Companies Listed on the Indonesia Stock Exchange (IDX) for the 2017-2020 period. Journal of Accounting and Management, 18(2)
Ghozali, I. 201 3 . Multivariate Analysis Program IBM SPSS 21 Update PLS Regression . Semarang: Diponegoro University Publishing Agency.
Gursida, H. 2017. The Influence of Liquidity, Solvency, and Exchange Rate to Company Profitability and Its Implications to Stock Price at Mining Sector Company. Journal of Applied Management and Business, 3(2)
Idris, KH, Erlely, TN, Yusuf, AMA, Overwriting, H., & Nurhilalia, N. (2022). The Effect of Profitability and Solvability on Tobin's Q with Firm Size as a Moderating Variable. AKUNSIKA: Journal of Accounting and Finance, 3(1), 7-15
Perwira, AAGAN & Wiksuana, IGB 2018. Effects of Profitability and Asset Growth on Dividend Policy and Company Value. Unud Management E-Journal, 7(7).
Prasetyo, RB & Firdaus, M. 2009. The Influence of Infrastructure on Regional Economic Growth in Indonesia. Journal of Economics and Development Policy, 2(2)
Putri, DA 2020. Determinants of Firm Value in Construction and Building Sub-Sector Companies on the Indonesia Stock Exchange. Thesis. Faculty of Economics and Business Darmajaya Institute of Informatics and Business Bandar Lampung
Putri, IGAPT, Rahyuda, H. 2020. Effect of Capital Structure and Sales Growth on Firm Value with Profitability as Mediation. International Research Journal of Management, IT & Social Sciences, 7(1).
Ramadhanty, NS and Budiasih, IGAN 2020. The Effect of Financial Leverage on Stock Returns with Corporate Social Responsibility Disclosure as Moderating Variable (Empirical Study on Mining Companies Listed on Indonesia Stock Exchange in 2016-2018). American Journal of Humanities and Social Sciences Research, 4(6).
Ross, SA 1977. The Determination of Financial Structure: The Incentive-Signalling Approach. The Bell Journal of Economics, 8(1)
Sartono, A. 2001. Financial Management: Theory and Applications. Issue 4. Yogyakarta: BPFE
Siahaan, E., Gultom, P., Lumbanraja, P. 2016. Improvement of employee banking performance based on competency improvement and placement working through career development (case study in Indonesia). International Business Management, 10(3).
Soesilo, TD 2019. Types and Action Research Procedures. Salatiga: Satya Wacana University Press
Sofiani, L and Siregar, EM 2022. Analysis of the Influence of ROA, CR, and DAR on Company Value of the Food and Beverage Sector. Scientific Journal of Unitary Accounting 10 (1).
Spence, M. 1973. Job Market Signaling. Quarterly Journal of Economics 87(3).
Sudana, IM. 2015 Corporate Financial Management Theory and Practice. Issue 2. Jakarta: publisher
Suwanna, T. 2012. Impacts of Dividend Announcement on Stock Return. Procedia-Social and Behavioral Sciences 40(2012).
Suwardika, I., Mustanda, I. 2017. Effect of Leverage, Company Size, Company Growth, and Profitability on Company Value in Property Companies. Unud Management E-Journal, 6(3).
Syamsuddin, L. 2004. Company Financial Management. Jakarta: PT. King of Grafindo Persada
Syamsuddin, L. 2011. Company Financial Management. Jakarta: Rajawali Press
Wardita, W. & Astakoni, MP 2018. Profitability, Company Growth and Company Size as Determinants of Capital Structure. KRISNA Journal: Collection of Accounting Research, 9(2).
Weygandt, JJ, Kieso, DE, Kimmel, PD 2010. Financial Accounting: IFRS edition . Hoboken: Wiley
Wicaksari, EA 2015. The Effect of Debt To Equity Ratio, Capital Expenditure and Asset Tangibility on Company Value with Profitability Mediation. thesis. Semarang: Diponegoro University
Widarjono, A. 2007. Econometrics: Theory and Applications for Economics and Business, second edition. Yogyakarta: Faculty of Economics Economics, Indonesian Islamic University
