EFFECT OF CAPITAL STRUCTURE, PROFITABILITY, TAX PLANNING AND DIVIDEND POLICY ON THE VALUE OF COMPANIES LISTED ON THE IDX

Abd Rohman Taufiq, Yunita Futui Trianti

Abstract

This study aims to analyze the effect of capital structure, profitability, tax planning, and dividend policy on firm value. The research method uses an indexed population of 57 consumer goods listed on the IDX in 2020 with a sample of 27 companies. The sampling technique used was purposive sampling. The results showed that the capital structure had an effect on firm value with a significant level of <0.05. This shows that the capital structure has an effect on firm value received on the grounds that capital in the use of debt can increase firm value related to interest costs on debt to reduce tax payments. While the profitability of the company's value with a significant level reached <0.05. This shows that profitability has a positive effect on company value and the company's competitive advantage. Tax planning has no effect on firm value with a significant level of 0.586. This shows that tax planning is rejected on the grounds that the tax burden is categorized as a tax rate set by the government. As for the dividend policy on the value of the company with a significant level reaching 0.083. This shows that the dividend policy provides more certainty for investors.

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