Profitability and Firm Value: Does Dividend Policy Matter for Indonesian Sustainable and Responsible Investment (SRI)-KEHATI Listed Firms?

This study investigates the potential factors explaining inconsistent relationship between profitability and firm value. Specifically, it examines whether dividend policy contributes to profitability–firm value determines form of moderating variables. We use a unique data set from Indonesian capital market, with sustainable responsible investment (SRI)-KEHATI-listed firms 2010 2019. Adopting hierarchy analysis, results show positive direct Moreover, becomes stronger higher ratio. complement this evidence that plays role as pure moderator in more firms. A sensitivity battery analysis endogeneity concern consistent baseline model, implying model is robust different conditions. Additional tests revealed prominent low-leverage enterprises, low-intensity advertising firms, during financial service authority’s post-dividend regulation phase. The implication our corporate country play competitive strategy increase shareholder for SRI-KEHATI-listed