Funding Decisions and Dividend Policies on Financial Performance
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ABSTRACT: This study aims to analyze
(1) The influence of investment decisions on financial performance and corporate value;
(2) Funding decision on financial performance and corporate value;
(3) Dividend policy on financial performance and corporate value; and
(4) Financial performance of corporate value. The study was conducted in the banking industry listed on the Indonesia Stock Exchange. The total companies listed in the period 2013 to 2015 are 40 companies. The data were analyzed using Path Analysis Model with the help of Analysis Moment of Structure (AMOS) program version 21.
The results showed
(1) investment decisions and funding decisions have positive and insignificant impact on financial performance and have a positive and significant effect on firm value;
(2) dividend policy has a positive and significant effect to financial performance and firm value;
(3) financial performance has a positive and significant impact on the value of the company.
KEYWORDS: Investment decision, funding decision, dividend policy, financial performance, corporate value.