Impact of Profitability Moderation on Investment Decisions, Firm Size, and Dividend Policy on Firm Value

Abstract

The purpose of this paper is to investigate the effect of dividend policy on firm
value depending on investment decisions, firm size and profitability. The data used in this
research is secondary data from 2019-2021. The population in this study amounted to 204
manufacturing companies listed on the IDX with the sampling technique using purposive
sampling obtained 72 companies. Testing the hypothesis in this study using PLS. The
results obtained show that investment decisions and dividend policy have an effect on
firm value, firm size has no significant effect on firm value, profitability is able to
moderate investment decisions and firm size on firm value, and profitability is not able to
moderate the effect of dividend policy. on company value. The implication of this
research is that management is expected to consider it when making company decisions.