The Effect of Dividend Policy, Sales Growth, and Firm Size on Firm Value

Vollständiger Abstract

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Firm value is an important indicator of a company's performance and attractiveness to investors. However, previous studies have reported inconsistent findings regarding the effects of dividend policy, sales growth, and firm size on firm value, particularly in the consumer non-cyclicals sector. This study aims to examine the influence of dividend policy, sales growth, and firm size on firm value in consumer non-cyclicals companies listed on the Indonesia Stock Exchange during the 2019–2023 period. This research uses a quantitative approach with secondary data obtained from annual reports. The sample consists of 18 companies selected through purposive sampling, resulting in 90 observations. Data were analyzed using panel data regression with the Fixed Effect Model (FEM). The results show that dividend policy has a significant negative effect on firm value, while sales growth and firm size do not have a significant effect on firm value. Simultaneously, dividend policy, sales growth, and firm size significantly affect firm value. These findings provide additional empirical evidence regarding the determinants of firm value in Indonesia’s consumer non-cyclicals sector and offer practical insights for investors and corporate management in making financial and investment decisions.