The effect of dividend payouts on firm value: The moderating role of institutional investors

Ulfah Nurokhmah, Sudarto Sudarto, Rio Dhani Laksana


This paper investigates the relationship between dividend payouts and firm value. The study also shows how this relationship is moderated by institutional investors. Our sample consists of 136 observations consisting of 34 manufacturing companies listed on the Indonesia Stock Exchange over the period 2018-2021. The results of multiple linear regression and moderating regression show that the dividend payout ratio positively affects firm value and institutional investors increase the positive effect of dividend payouts on firm value. 


Keywords: Dividend signaling theory; agency problems; dividends; institutional investors; firm value 


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