The Effect of Capital Structure, Firm Growth and Dividend Policy on Profitability and Firm Value of the Oil Palm Plantation Companies in Indonesia

Abstract

This research aims to test and analyze the effect of capital structure, firm growth, and dividend policy on the firm value, either direct or indirect. This research uses secondary data from the quarterly financial statements of oil palm plantation companies listed in the Indonesian Stock Exchange for period 2007-2011. Based on the recapitulation, the data that meet the criteria for analysis are from 5 companies of the 13 companies listed in the Indonesian Stock Exchange.The research results shows that the capital structure negatively and significantly influences the profitability and the firm value. The firm growth negatively and significantly influences the profitability and the firm value. The dividend policy positively and significantly influences the profitability but positively and not significantly influence the firm value. The profitability positively and significantly influences the firm value. The capital structure negatively and significantly influences the firm value through profitability. The firm growth negatively and not significantly influences the firm value through profitability, and the dividend policy positively and significantly influences the firm value through profitability.

Keywords: Capital structure, Dividend policy, Firm growth, Firm value, Profitability