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The Determinants of Company Value with Dividend Policy and Corporate Social Responsibility (CSR) as Moderators of Oil Palm Plantation Companies in Indonesia
Jhonni Sinaga, Djoko Setyadi, Ardi Paminto, Felisitas Defung

Universitas Mulawarman


Abstract

The aims of this research are to test and analyze either direct or indirect effects of capital structure, firm growth, and profitability on firm value with dividend policy and corporate social responsibility (CSR) as moderators. Secondary data from the quarterly financial statements, annual reports, sustainability reports, and other reports of oil palm plantation companies listed in the Indonesian Stock Exchange for the period of 2009 - 2017 are used. Refer to recapitulations, the data that meet the criteria for the analysis are from 5 companies of the 16 companies listed. The research results show that the negative and highly significant effect of capital structure on the firm value during the period of the not stable global economy marked by the downward trend of crude palm oil (CPO) sales price can be mitigated or changed to become positive and significant by increasing the dividend payment onward the optimal stage consistently and also by implementing the optimal and consistent CSR. The positive and not significant effect of capital structure on the firm value through the company growth can also be mitigated or changed to become positive and significant by increasing the dividend payment onward the optimal stage consistently. Moreover, the thorough and accurate consideration on marginal benefits and costs of using the long term bank loan or obligation to finance the company operation becomes more essential to the company management due to the long investment period of oil palm estate (3 years). The company growth and profitability do not mediate the direct effect of capital structure on the company value either individually or together. The company growth that stimulates the increase of the profitability cannot strengthen the direct effect of capital structure that is dominated by the long-term debt on the company value. The company growth does not mediate the direct effect of capital structure on the profitability and the profitability does not mediate the direct effect of company growth on the company value.

Keywords: Capital structure, Company Growth, Profitability, Firm Value, Dividend policy, and Corporate Social Responsibility (CSR).

Topic: Economics

Link: https://ifory.id/abstract/HzVrnxDCYg4T

Conference: The 2nd Mulawarman International Conference on Economics and Business (MICEB 2019)

Plain Format | Corresponding Author (Jhonni Sinaga)

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