Analysis the Effect of Investment Opportunity Set (IOS) on the Dividend Policy of Constructions Companies Listed on the Indonesia Stock Exchange
- DOI
- 10.2991/miceb-17.2018.13How to use a DOI?
- Keywords
- investment opportunity set, dividend policy, construction company
- Abstract
The purpose of the company is increasing the value of the company so as to provide prosperity for the owners or shareholders. Construction companies are expected to be investments that provide benefits to shareholders. Investors expect return on investment in dividends. This study aims to analyze the effect of investment opportunity set on the dividend policy of construction companies listed on the Indonesia Stock Exchange. The Investment Opportunity Set describes the breadth of investment opportunities for construction companies. Companies with high growth are often said to have high investment opportunities (IOS). This motivates the managerial side reinvesting in large amounts. This research is explanatory research. The sample of study was 14 construction companies listed on the Indonesia Stock Exchange with secondary data in the form of time series data of 2010-2016. The variables used Investment Opportunity Set and Dividend Policy. The Investment Opportunity Set variable was measured by Capital Expenditure to Book Value of Asset Ratio (CAPBVA), Earning Per Share (EPS) and Market Value Assets to Book Value Assets (MVA / BVA) indicators. The Dividend Policy variable was measured by Dividend Payout Ratio (DPR) indicator and Dividend Per Share (DPS) indicator. Data analysis used Structural Equation Modelling (SEM) approach using SmartPLS 3.0 program. Based on the result, IOS had a positive and significant influence to dividend policy of Construction Company listed in Indonesia Stock Exchange. Furthermore, IOS to dividend policy was equal to 0,267 with positive direction and result of research showed p-value 0,001. This means that the greater the IOS of construction companies listed on the Indonesia Stock Exchange had a positive and significant impact on the company's dividend policy.of waste generated, as a whole the company has a clean and environmentally friendly green product with the concept of ecoefficiency to increase the company's competitive advantage.
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Siswati Andaswari AU - Hadi Pitono AU - Rusdiah Iskandar PY - 2017/10 DA - 2017/10 TI - Analysis the Effect of Investment Opportunity Set (IOS) on the Dividend Policy of Constructions Companies Listed on the Indonesia Stock Exchange BT - Proceedings of the Mulawarman International Conference on Economics and Business (MICEB 2017) PB - Atlantis Press SP - 81 EP - 88 SN - 2352-5428 UR - https://doi.org/10.2991/miceb-17.2018.13 DO - 10.2991/miceb-17.2018.13 ID - Andaswari2017/10 ER -