Moderating the Company Value’s Determinants of Oil Palm Estate Company in Indonesia
(1) Universitas Bhayangkara Jakarta Raya
(*) Corresponding Author
Abstract
The purpose of this study is to get the evidences of direct and indirect effects of the company value’s determinants moderated by the dividend policy and the Corporate Social Responsibility (CSR). Purposive sampling determines the chosen samples. Refer to the performed recapitulations and calculations, there are only 5 companies of the 24 listed at IDX that meet the given criteria. The results indicate that the capital structure influences the company value negatively and significantly during the years of the not stable global economy marked by the downward trend of the product sales price. This effect can be mitigated and changed into positive and significant by increasing the dividend payments onward the optimal level consistently and also by implementing the optimal and consistent CSR activities. The positive and not significant capital structure effect on the company value through the company growth can also be mitigated or changed to become positive and significant by increasing the dividend payments onward the optimal level consistently. Moreover, the thorough and accurate consideration on the marginal benefits and costs of using the long-term bank loan or obligations to finance the company operation becomes more essential to the company management as a result of the long investment period of oil palm estate companies (3 years).
Keywords
References
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DOI: http://dx.doi.org/10.33019/ijbe.v9i4.1346
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