Sutjiati, Rosemarie (2017) Role of Sustainable Growth Rate to Increase Company's Value. In: 14th International Annual Symposium on Management, March 3rd-4th, 2017, Riau.
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Abstract
One of important duties of company’s management is to maximize the wealth of shareholders which generally measured through the stock price. But this goal must not be achieved just for one year only but also for the next year and so on. In other world, a company would need to perform as best as they could and be capable to maintain it. The company’s growth rate especially sustainable growth rate becomes important here as one power beside debt that can improve company’s value. This paper tries to examine the role of investment in fixed asset and dividend policy in improving sustainable growth rate (SGR) and further their entire role in improving company value. This research use path analysis. Literature study is used here to better explain the result. Investment in fixed asset are measured through fixed asset divided by sales while dividend policy are measured through Dividend payout Ratio (DPR). Sustainable growth rate is made to be intervening/mediator variable to improve company value wich is measured by Price Book Value (PBV). The result shows that simultaneously investment in fixed asset and DPR have significant and negative effect to SGR while individually/partially, investment in fixed asset doesnt effect SGR while DPR has significant effect to SGR. The next result shows that simultaneously investment in fixed asset, DPR & SGR have significant effect to PBV while individually/partially, investment in fixed asset, DPR & SGR have all shown significant effect to PBV.
| Item Type: | Conference or Workshop Item (Paper) |
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| Uncontrolled Keywords: | Dividend payout ratio, fixed asset, sustainable growth rate, price book value |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management |
| Depositing User: | Perpustakaan Maranatha |
| Date Deposited: | 28 Aug 2017 01:58 |
| Last Modified: | 28 Aug 2017 01:58 |
| URI: | http://repository.maranatha.edu/id/eprint/22865 |
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