THE EFFECT OF INVESTMENT DECISIONS, DIVIDEND POLICY, AND AUDIT QUALITY ON FIRM VALUE

Abstract

This study provides empirical evidence of the effect of Investment Decisions, Dividend Policy and Audit Quality on Firm Value. Investment Decision is measured by Capital Expenditure to Total Assets (CAP/BVA), Dividend Policy is measured by Dividend Yield (DY), Audit Quality is measured by KAP size, and Firm Value is measured by Price Book Value (PBV). The type of research used in this study is a type of quantitative research with the population in this study are Pharmaceutical Sub-Industry Companies listed on the Indonesia Stock Exchange during the 2020-2024 period, namely 14 companies and the number of observations in this study is 45 observational data. The research data is panel data processed using EViews software version 12. Hypothesis testing is done with multiple linear regression analysis tests. The results of this study indicate that Investment Decisions have a negative effect on Firm Value, Dividend Policy has a negative effect on Firm Value, and Audit Quality has a positive effect on Firm Value.