The mediating effect of investment decisions and financing decisions on the effect of corporate risk and dividend policy against corporate value

  • Received February 24, 2017;
    Accepted March 23, 2017;
    Published June 2, 2017
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/imfi.14(2).2017.03
  • Article Info
    Volume 14 2017, Issue #2, pp. 27-37
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This study aims to determine the effect of mediation decisions on investment, and financing decisions influence the company’s risk and dividend policy on firm value. The unit of analysis in this research is company property and real estate sectors listed in Indonesia Stock Exchange continuously for 9 years (2001-2008) that have a complete financial report on the study period. This research study using descriptive analysis and inferentsial to prove examine the relationship between the study variables with the five structural models using WarpPLS. This study is basically to analyze the patterns of relationships between variables in order to determine the effect of directly or indirectly, a set of independent variables (exogenous) to the dependent variable (endogenous). The company’s risk and investment decisions are able to increase the value of the company, while the dividend policy and funding decisions are not able to increase the value of the company, the study was conducted at the companies in the sectors of property and real estate, then this study better developed for other sectors that have different characteristics. Originality from this research is the populations in this study were the companies in the sectors of property and real estate with specific criteria Indonesia and the data used in this study were secondary data obtained from the Indonesia Stock Exchange in the form of financial statements.

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    • Figure 1. Development of average. Average Value Risk Indicators in Sector Property and Real Estate Year during 2001-2008
    • Figure 2. Development of Average. Average Value Indicator policy Sector Dividend Property and Real Estate during 2001-2008
    • Figure 3. Development of Average. Average Value Indicators of Investment Decision in Property and Real Estate Sector during 2001-2008
    • Figure 4a. Development of Average. Average Value Indicators of Decision Funding in the Property and Real Estate Sector during 2001-2008
    • Figure 4b. Development of Average. Average Value Indicators of Decision Funding in the Property and Real Estate Sector during 2001-2008
    • Figure 5. Development of Average. Average Value of Companies in Sector. Indicator Value in Property and Real Estate during 2001-2008
    • Figure 6. Effect of Risk Analysis Results in WarpPLS Dividend Policy of the Company and Investment Decisions, Decisions Funding to Company Value
    • Table 1. Measurement model
    • Table 2. Hypotheses Testing Model WarpPLS
    • Table 3. The results of Hypotheses Testing in Inner Model: Indirect Influence