The Influence of Profitability, Funding Decisions, and Dividend Policy on the Values of Property and Real Estate Firms in Indonesia: Institutional Ownership as a Moderator Variable

Abstract

This study aims to examine and analyze the influence of profitability, funding decisions, and dividend policy on the values of property and real estate firms in Indonesia with institutional ownership as a moderator variable. 47 property and real estate companies listed in the Indonesian stock exchange, 25 companies were selected as the sample of study using the purposive sampling technique over the period 2012-2016. Using the multiple linear regression analysis, study found that profitability, funding decisions, and dividend policies have significant effects on firm’s value. Institutional ownership failed to moderate the influences of profitability, funding decisions, and dividend policy on the firms’ value. For investors this research can help to make decisions in investing and giving information that not only the stock price can reflect firms’ value but in terms of profitability, funding decision, dividend policy can describe the condition of a company. Keywords— profitability; funding decisions; dividend policy; firm value; institutional ownership