Research Article
The Moderating Role of Investment Opportunity Set on The Firms’ Dividend Decisions
@INPROCEEDINGS{10.4108/eai.5-8-2020.2301011, author={Bayu Sindhu Raharja and Qosim Khoiri Anwar and Arif Nugroho and Frank Aligarh}, title={The Moderating Role of Investment Opportunity Set on The Firms’ Dividend Decisions}, proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2020}, month={10}, keywords={firm growth firm performance agency theory}, doi={10.4108/eai.5-8-2020.2301011} }- Bayu Sindhu Raharja
Qosim Khoiri Anwar
Arif Nugroho
Frank Aligarh
Year: 2020
The Moderating Role of Investment Opportunity Set on The Firms’ Dividend Decisions
ICBAE
EAI
DOI: 10.4108/eai.5-8-2020.2301011
Abstract
This study examines the factors that influence the firms in taking dividend policy. The factors studied in this study are the firms' profitability and firms' growth. Beside of that, it also examines the moderating effect of investment opportunity sets concerning company profitability and company growth with dividend decisions. The sample of this study are manufacturing firms which listed on the Indonesia Stock Exchange. The methods used to analyse this moderating effect is Moderated Regression Analysis (MRA) and Chow-test. The results indicate that profitability has a positive and significant effect on dividend decisions. Besides, this study also proves that company growth has a significant negative impact on dividend decisions. Likewise, with the introduced moderation effect in this study, the results of the analysis show evidence that there is a moderating effect of the investment opportunity set (IOS) in the relationship of company profitability, the growth of the company with dividend decisions.
