dividend policy and corporate value (a meta-analysis)

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Corresponding Author:Tifani Titah Dwi Tyastari: Tel. +62 341 555 000; Fax.+62 341 553 834E-mail: [email protected]

Jurnal Keuangan dan Perbankan, 21(3): 344–355, 2017Nationally Accredited: No.040/P/2014

http://jurnal.unmer.ac.id/index.php/jkdp

Dividend Policy and Corporate Value (A Meta-Analysis)

Tifani Titah Dwi Tyastari, Rosidi, Erwin Saraswati

Department of Accounting Faculty of Economics and Business University of BrawijayaJl. M.T. Haryono No.165 Malang, 65145, Indonesia

ABSTRACT

This study aimed to understand the effect of dividend policy on corporate value, as wellas to examine and analyze the variation of result study on corporate value in Indonesia.Dividend Signaling Model was the grand theory used to explain the effect of dividendpolicy on corporate value. This study used meta-analysis approach with the sample were70 researches in Indonesia, both the published and unpublished in 2007-2015. The resultof this study, meta-analysis strengthens the findings of the previous study which statedthat the dividend policy could increase the corporate value. The differences of the previ-ous studies were due to the presence of moderation effect from the measurement model ofcorporate value and dividend corporate.

ABSTRAK

Penelitian ini bertujuan untuk mengetahui pengaruh kebijakan dividen terhadap nilai perusahaan,serta menguji dan menganalisis variasi hasil penelitian nilai perusahaan di Indonesia. DividendSignaling Model merupakan dasar teori yang digunakan untuk menjelaskan pengaruh kebijakandividen terhadap nilai perusahaan. Penelitian ini menggunakan pendekatan analisis meta denganjumlah sampel 70 penelitian di Indonesia, baik yang dipublikasi maupun yang tidak dipublikasipada tahun 2007-2015. Hasil analisis meta memperkuat temuan penelitian sebelumnya yangmenyatakan bahwa kebijakan dividen dapat meningkatkan nilai perusahaan. Perbedaan hasilpenelitian-penelitian sebelumnya dikarenakan adanya efek moderasi dari model pengukuran nilaiperusahaan dan kebijakan dividen.

Keywords:Corporate Value;Dividend Policy;Meta-Analysis

JEL Classification:G02, G23, G32,

Kata Kunci:Nilai Perusahaan;Kebijakan Dividen;Analisis Meta

ISSN:2443-2687 (Online)ISSN:1410-8089 (Print)

Dividend Policy and Corporate Value (A Meta-Analysis)Tifani Titah Dwi Tyastari, Rosidi, Erwin Saraswati

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Corporate value is investor perception towardcorporate level of success (Mesrawati, 2013). Theincreasing level of corporate value will also in-crease the investor trust to corporate prospect inthe future. The company could take strategic stepin obtaining high corporate value. According toHashemijoo et al. (2012), the important decisionin funds management of the company is the profitdistribution, which is shared as dividend or in-vestment for other investment chance. If managerchoose to distribute the profit to the shareholdersas dividend, it is important to consider how bigthe proportion shared and the proportion returnedto the company. Investment and funds decisionwill affect the company vision in the future.

Based on the Dividend Signaling Model, divi-dend tends to affect positively toward the corpo-rate value. The aim of investing is not only to getcapital gain, but also to expect the company divi-dend sharing. Based on those things above, thecompany which regularly share their dividend willincrease the interest of the investor to invest inthat company. The increase number of investorinterest will also affect the corporate value.

This study focuses on dividend policy strat-egy, because previous studies stated inconsistentresults the effect of dividend policy on corporatevalue. Several studies have found that dividendpolicy has a positive effect on corporate value(Agustina, 2011; Artini & Puspaningsih, 2011; Putri,2011; Hutami, 2012; Instanti, 2013; Juhandi, 2013).In contrast, another study found that dividendpolicy has a negative effect on corporate value(Rakhimsyah & Gunawan, 2011; Harahap &Wardhani, 2012; Rahmandia, 2013). Other studiesstated that dividend policy does not affect thecorporate value (Dossugi 2009; Sofyaningsih &Hardiningsih, 2011; Putri, 2013; Bakti, 2014).

According to Eny (2013), when experiencesuch a case, the power to examine the validity andgeneralizability of substantial research that hasbeen carried out in a field of study, research must

be done by using Meta-Analysis. Meta-Analysis isa study on a number of research results in the sameproblem, then summarized and analyzed, so thatwe will get a conclusion on the problem-solving(Glass, 1976). One of the conditions required toperform meta-analysis is the assessment of theresults of similar research (Tawi, 2008).

The use of meta-analysis in this study triesto figure measurements (proxy) the most appro-priate one for a dividend policy variable and thevariable of corporate value, resulting in a correla-tion in accordance with the Dividend SignalingModel and conditions in Indonesia. Test that car-ried out on the meta-analysis is the moderatingeffects test. Moderating effects test used to seethe consistency of the research data, and then ana-lyzed the inconsistencies caused by the measure-ment of different variables. This study uses a divi-dend policy variable measurement and corporatevalue variable measurement.

There are several reasons that motivate toconduct this study by meta-analysis approach.First, research on the effect of dividend policy oncorporate value is already a lot but, with variedresults. So the meta-analysis is a good tool to findthe appropriate conclusion regarding the focus ofthe research. Second, the meta-analysis is the mostobjective method and approach towards quanti-tative in terms of research that uses methods ofstudy articles or reviews (Tawi, 2008). The focuson meta-analysis is the data, not the conclusion ofthe study. So the result of the estimated effect ofdividend policy on corporate value is more reli-able and trustworthy. Third, there is a relativelylack of studies with meta-analysis approach in thefield of accounting, particularly in Indonesia.

This study aims to examine and analyze theeffect of dividend policy on corporate value byusing meta-analysis. Another purpose of this studyis to examine and analyze the variations in the re-search results on corporate value in Indonesia dueto the moderating effect of the measurementmodel of corporate value and dividend policy.

Jurnal Keuangan dan Perbankan | KEUANGANVol. 21, No. 3, Juli 2017: 344– 355

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Effect of dividend policy on corporate valueis based on the Dividend Signaling Model. Divi-dends as a signal for the company tend to be usedto describe the provision of information to themarket, not to mention about the optimal dividendpolicy (Weston & Copeland, 1997). High dividendpayment announcement can be interpreted as apositive signal for investors because the high divi-dend shows that the company is confident of fu-ture cash flows which are large enough to coverthe dividend rate.

Manager as the company’s internal partiesis better informed about the company in moredetail than with external parties (shareholders).The gap of information (asymmetric information)between the 2 sides will be difficult for investorsto assess the company’s quality objectively. Oneway that the company can do to overcome this isto pay dividends to shareholders (Megginson,1997; Weston & Copeland, 1997; Arifin, 2005;Manurung, 2012; Gumanti, 2013; Engombe, 2014).

Meta-analysis is a statistical technique thatis involved in extracting and combining data fromprevious research results to produce a summary(Hunter & Schmidt, 1990; Ahmed & Courtis, 1999;Fanani, 2016). According to Glass (1976), meta-analysis can be interpreted simply as an analysisof the analysis. Meta-analysis seeks to examine andanalyze several similar studies with results thatmay vary, so it can produce a conclusion on dif-ferences in the study.

Meta-analysis is a research method litera-ture review with a quantitative perspective. In themeta-analysis, it is performed a collection of ar-ticles on the same topic, but there are gaps in it.Then, it is conducted the analysis the effect sizebased on statistical results of the data containedin the article. Meta-analysis can also test the mod-erating effects in a study, so it can be knownwhether the gap caused by the measurement ofcertain variables that moderate the relationshipbetween variables.

Meta-analysis is a good tool to address prob-lems in this study. Meta-analysis is able to explainthe influence of dividend policy and corporatevalue. Meta-analysis is also able to explain themoderating effects that may lead to differences inthe results of research on the impact of dividendpolicy on corporate value. In this study, using divi-dend policy and corporate value as a measurementvariable in the test the moderating effects.

HYPOTHESES DEVELOPMENT

The Effects of Dividend Policy on CorporateValue

According to Lintner (1956) one of the im-portant factors that determine the dividend policychange is the company’s profit. In order for thepayment of dividends can take place smoothly,then the manager develop a dividend policy thatis based on the amount of profits from the com-pany. It was concluded that a stable dividend pay-ments will impact on the increased interest of in-vestors to invest in the company, so it will auto-matically increase the value of the company.

According Aharony & Swary (1980) whenthe dividend is reduced, then the stock price de-creased. The findings support the notion that thereis a strong correlation betweendividends and thestock price. Kostyuk (2006) examined the effect ofdividend policy determined by the company oncorporate value is reflected in the stock price. Asa result, in all categories, the dividend policy haspositive effect on corporate value. Murekefu &Ouma (2012) conducted a study on the effect ofdividend policy on firm performance (value com-panies) in Kenya. The study states that the divi-dend policy has positive influence on the perfor-mance of the company.

Ansori & Denica (2010), Wijaya (2010),Martikarini (2012), Fenandar (2013), and Sari (2013)conducted a study on the effect of dividend policyon corporate value using a second proxy variables


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are similar. Dividend policy used DPR as the proxy,while the value of the company used PBV as theproxy. The results showed that the positive effectof dividend policy on corporate value.Some ofthese studies explain that the dividend policy haspositive influence on the value of the company inaccordance with the Dividend Signaling Model.Based on some earlier research, it can be hypoth-esized as follows:H1: Dividend policy has positive effect on cor-

porate value.

Moderator Variable Analysis on theCorrelation between Dividend Policy andCorporate Value

Research on the effect of dividend policy oncorporate value has a lot to do. Rakhimsyah &Gunawan (2011) and Harahap & Wardhani (2012)investigated the effect of dividend policy on cor-porate value using DPR proxy for dividend policyand PBV for the corporate value. However, in con-trast to other studies (Ansori & Denica, 2010;Wijaya, 2010; Martikarini, 2012; Fenandar, 2013;Sari, 2013), the results of the study stated that thedividend policy negatively affect the corporatevalue.

Some studies suggest that dividend policydoes not affect the corporate value (Dossugi, 2009;Hardiningsih, 2009; Sofyaningsih & Hardiningsih,2011; Ningsih & Indarti, 2012; Gayatri & Mustanda,2014; Ulya, 2014; Abdullah, 2016). Those researchusing the same proxy, the Dividend Payout Ratio(DPR) for the dividend policy and Price to BookValue (PBV) for the value of the company.

Based on the explanation, the conclusionsabout the effect of dividend policy on corporatevalue still cannot be known certainly. It needs todo more research on the causes of differences inthe results, derived from the measurement modelof the dividend policy or the corporate value mea-surement model. That is because, in previous stud-

ies, both the dividend policy and the corporatevalue using different measurements. Based on thepresentation, the proposed hypotheses is as fol-lows:H2a: The effect of dividend policy on corporate

value is moderated by the measurementmodel on corporate value.

H2b: The effect of dividend policy on corporatevalue is moderated by the measurementmodel on dividend policy.

METHODS

This study uses literature review approachto assessing the results of research on the effect ofdividend policy on corporate value. This studyused meta-analysis as an analytical tool that aimsto obtain answers to the inconsistency of resultsof previous studies on the effect of dividend policyon corporate value. The study will analyze theresults of research on the effect of the dividendpolicy on the corporate value in Indonesia for 9years from 2007-2015. Because at that period, theresearch on it has more to do with include com-plete data for research purposes meta-analysis.Therefore, this period is considered adequate andrepresentative in capturing the development of aresearch.

The data used in this research is second-ary data in the form of research articles about theeffect of dividend policy on the corporate value inIndonesia both published and non-published inIndonesia. The use of unpublished research datais to test the sensitivity of the study. Whether theresults of this study are influenced by the type ofpublication of the research or not. In addition, thedata used comes from scientific research in theform of thesis and dissertation from the Univer-sity in Indonesia.

The research objects included in the meta-analysis in this study have the following charac-teristics: (1) a study of firm value focused on ex-


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amining the relationship between dividend policyand firm value quantitatively; (2) research on thevalue of a company that places the proxy of firmvalue as a dependent variable; (3) the indepen-dent variables included in the analysis are deter-mined based on the amount of research sufficientto perform the meta analysis and which have dif-ferent research results, namely dividend policy;and (4) the statistical summary reported in suchstudies should not be a correlation coefficient (r)to the relationship of dividend policy to firm value,but it could be if other reported statistics can betransformed into statistical r, such as t-statistic orp-value (Hunter & Schmidt, 1990; Lipsey & Wil-son, 2001).

This study uses a sampling judgment in de-termining the object of research. Judgment sam-pling is done if investigators determine the objectof the selected sample based on the evaluation(judgment) of the researcher (Eny, 2013). The dataof dividend policy and corporate value is obtainedfrom the statistical data of the research sample.According to Hunter & Schmidt (1990), Ahmed &Courtis (1999), and Eny (2013), the steps in con-ducting the analysis of data in meta-analysismethod are: (1) developing appropriate data toresearch topics; (2) selecting data in accordancewith the research needs; (3) identifying the vari-ables used in the study; (4) statistical analysis(meta-analysis techniques); and (5) sensitivityanalysis.

In the meta-analysis, there is a moderationvariable testing technique. The moderation vari-able is a variable that causes a difference in thecorrelation between 2 other variables (Ahmed &Courtis, 1999). This study used Chi-square testbased on Hunter & Schmidt (1990) to determinemoderation variable. If the Chi-square test yieldsinsignificant value, it means that the result of theanalyzed research is homogeneous, it gives indi-cation of no moderation variable. So it can be con-cluded that the difference between that correla-

tions is statistical error and not the functional er-rors of some moderating variables (Ahmed &Courtis, 1999). If the Chi-square test produces asignificant value, it means heterogeneity occurs,so it is necessary to enter the moderation vari-able.

That is, variations of existing research re-sults are moderated by other variables. This studywill use measurement as a moderating variable,both for proxy dividend policy and firm value.The effects of moderation variables were done bysub-grouping the studies and calculating r (corre-lation coefficient) and S2r (variance total) for eachsub-group hypothesis. Sub-group classification isdone according to different measurement of de-pendent variable and independent variable. Thepurpose of this subgroup is to reduce heterogene-ity and to increase explanatory strength (Lyons,2002; Ahmed & Courtis, 1999).

RESULTS

During the study period (2007-2015), it iscollected 156 researchs appropriate to the topic ofthe influence of dividend policy on corporate value.The study was then selected to find studies withcomplete data in accordance with the needs of ameta-analysis. After select the research, collected70 samples of research (see Appendix 1) in accor-dance with the required criteria.

Explanatory variables in this study using avariable dividend policy. Based on the results ofmeta-analysis, table 1 of 74 studies that examinethe effect of dividend policy and the corporatevalue, generating an average correlation (])= 0.0745with a confidence interval of 95 percent (from0.0111-0.1378). These results indicate that the divi-dend policy positively and significantly affects onthe corporate value, so it can be said that hypoth-esis 1 (H1) can be accepted.

Based on calculations Chi Square (X2k-1), ob-

tained value of 427.5249. The value is greater than


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the value of Chi Square table (X20,01), namely

102.8163. It indicates the moderating effects thataffect the relationship between the dividend policyand corporate value. Therefore, to know thewhereabouts of the moderating effect requiredsub-group analysis of the measurement model ofthe dividend policy and corporate value.

Meta-Analysis on the Moderator Effect(Sub-group Analysis)

Based on the results of Chi Square test thatwas done previously, the value of Chi Square countis greater than the value of Chi Square table (X2

k-1>X2

0,01). So we can say there is a moderating effectbetween dividend policy and corporate value.Table of Meta Sub-group describes the effect ofmoderating the enterprise value measurementmodel and the measurement model dividendpolicy.

The results of the sub-group that carried outthe measurement of the value of enterprise vari-able (the dependent variable), the PBV, ClosingPrice, Tobin’s Q, PER, MVE, and Realized Returnvaried. Based on research data samples in accor-dance with predetermined criteria, the measure-ment of the corporate value that is widely used isthe PBV. Table 2 measurements using PBV, Tobin’sQ, and MVE indicate a significant relationship be-tween the dividend policy and the corporate valuein the same direction with the general results ofmeta-analysis (positive). Measurement of the cor-porate value using Realized Return also indicates asignificant relationship between the dividend policyand the corporate value, but in the opposite direc-tion to the general results of meta-analysis, which

is negative. Measurement of the corporate valueusing the Closing Price and PER indicates the ef-fect was not significant between the dividendpolicy and corporate value. The mixed results in-dicate the effect of moderating effects between thedividend policy and the corporate value, so it canbe said hypothesis 2a (H2a) can be approved.

Measurement of a dividend policy variable(independent variables), namely DPR, DPS,Dummy, and DY, also a moderator for the effectof sub-group analysis results varied. Based on re-search data samples in accordance with predeter-mined criteria, measurement dividend policy thatis widely used is the DPR. Measurement dividendpolicy by using the DPR and Dummy indicated asignificant positive effect between the dividendpolicy and the corporate value, in accordance withthe general results of meta-analysis. Another mea-surement using DPS and DY indicates the result isnot significant because the minimum and maximumvalues (confidence interval) indicate positive andnegative values. The results of the sub-group basedon the measurement of the independent variablesvary, so it can be concluded that there is a moder-ating effect between the effects of dividend policyon corporate value. Based on this it can be saidhypothesis 2b (H2b) is approved.

DISCUSSIONThe Effect of Dividend Policy on CorporateValue

Results of general meta-analysis in this studyproves that the dividend policy of significant posi-tive effect on corporate value. This is consistentwith the hypothesis put forward earlier (H1). Ad-

K study r Min To Max x2k-1 Description

General Meta-Analysis 10816 74 0,0745 0,0111 - 0,1378 427,5249 Significant

Table 1. Meta-Analysis Results (General Meta-Analysis)

Source: Data Processing


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ditionally, result of a meta-analysis is also consis-tent with the Dividend Signaling Model theory anddividend policy phenomenon in Indonesia. It ex-plains that the higher dividends paid by the com-pany, investors will be interested to invest in thesecompanies, so the corporate value will increase.

The result of meta-analysis in this study cor-respond to individual research conducted byKostyuk (2006) and Murekefu & Ouma (2012)which states that the positive effect of dividendpolicy on corporate value. Moreover, the resultsalso correspond with individual research in Indo-nesia that retrieves data from an Indonesian com-pany that is more relevant.

According to Ansori & Denica (2010), divi-dend policy significant positive effect on corpo-rate value. A manager should be able to meet theinterests of both companies and the shareholdersin determining the optimal dividend policy. Thedecision to pay dividends to shareholders mustbe accompanied by a decision to withhold part ofyour profits as a reserve investment. If the divi-dend paid by the company is large enough, then

the company must seek external funding to meetthe needs of investment funds. Conversely, if divi-dends were paid little, then the company’s reservefund will be large enough. However, it should alsobe remembered that the reserve fund substantialinvestment in the company will increase the pos-sibility of agency problems between the manag-ers and shareholders of the company. Therefore,the proportion of the dividends paid and theamount of reserves must be balanced investmentfunds, so as to benefit both management and share-holders, which will affect the determination of thevalue of the company.

Wijaya (2010) states that the dividend policyhas positive effect on corporate value. It is basedon the assumption that the dividend policy is im-portant for the company to meet shareholderwealth, but on the other hand does not hamperthe company’s performance. In accordance withthe signaling theory, the dividend contains infor-mation about the company’s prospects in the fu-ture. Announcement of increasing dividend hasincreased stock returns and can be used to coun-

Table 2. Meta-Analysis Result (Meta Sub-group)

Noted: Sig.= 0.05

K study r Min to Max x2 Description General Meta-

Analysis 10816 74 0.074455 0.011100 - 0.1378104 427.5249 Significant

DEP

END

ENT

PBV 6003 48 0.092692 0.038894 - 0.1464904 215.6383 Significant

Closing Price 1857 9 0.080321 -0.055582 - 0.2162247 139.4394 Not Significant

Tobin's Q 732 6 0.061055 0.033736 - 0.0883747 16.2792 Significant

PER 525 5 0.043077 -0.064855 - 0.1510096 34.0180 Not Significant

MVE 1404 3 0.039714 0.032308 - 0.0471218 8.3225 Significant Realized Return 295 3 -0.079140 -0.082671 - -0.0756104 3.5380 Negatively

Significant

IND

EPEN

DEN

T DPR 7726 63 0.066295 0.012677 - 0.1199137 276.2245 Significant

DPS 312 3 0.424644 -0.052969 - 0.9022575 116.1590 Not Significant

Dummy 912 3 0.162917 0.168161 - 0.1576727 0.4249 Significant

DY 613 3 0.005185 -0.034641 - 0.0450134 15.4569 Not Significant


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teract the issues that are not expected in the fore-seeable future (Aharony & Swary, 1980).

The results of this study have shown thatthe dividend policy affect the corporate value. Themajority research in Indonesia used fundamental-based, using financial ratios as a measure of valueand dividend policy. However, when seen in realconditions in the capital markets in Indonesia, in-vestors tend to look at the technical factors of acompany’s shares other than fundamental factors.Technical factors are stock movements duringsome periods. It can be a benchmark for investorsin determining trading decisions. In this study, theeffect of dividend policy on corporate value is ex-plained by fundamental factors because the datasample used entirely using ratios. Explanationsbased on technical factors can be done by insert-ing a study that tested the effect of dividend policyon corporate value by observing the movement ofstocks. However, in Indonesia, the research is stilllacking so it cannot be conducted meta-analysis.

The Effect of Dividend Policy on CorporateValue Moderated by the MeasurementModel on Dividend Policy and CorporateValue

Based on the results of meta-analysis, it isevident that the influence of dividend policy andcorporate value measurement models moderatedby dividend policy and the corporate value mea-surement model. It can be seen from the results ofan inconsistencies meta-subgroup, both for mea-surement of dividend policy and the measurementof corporate value. This means that the measure-ment of the dividend policy and the measure ofthe corporate value affect the results of previousstudies.

For example, research with different corpo-rate value measurement performed by Fenandar(2013), which uses DPR for the measurement ofdividend policy and PBV for measuring the cor-

porate value. The study stated that the dividendpolicy has positive effect on corporate value. Theopinion in accordance with the Dividend Signal-ing Model where the dividend policy is a signalgiven by the company to certify that the companyis in good condition.

Another study conducted by Bernandhi(2014), using the DPR for the measurement of divi-dend policy and Tobin’s Q as a measurement ofthe corporate value. The results of the study statedthat the dividend policy does not affect the cor-porate value, in accordance with the Dividend ir-relevance Theory (MM Theory) expressed byModigliani & Miller (1989). According to the re-sults, the dividend policy is not a factor that con-tributed significantly to the corporate value. Capi-tal gain more attractive to investors because oflower taxes and an expected major objective of theinvestment in a company

Unlike the previous studies, the research thatwas done by Haruman (2008) was using the MVEfor measuring the value of the company, while thedividend policy for the measurement using theDPR. The results of the study stated that the divi-dend policy negatively affect the corporate value.It is based on the assumption that the lower divi-dend payment will increase the corporate valuedue to increase reserves investment, so as to growthe company through investment projects (espe-cially for growing companies).

Studies using different measurement divi-dend policy, so that research results can varied,the research done by Prathama (2013). The studyused two kinds of measurements that the dividendpolicy DY and Dummy, while the measurement ofthe corporate value was using the PBV. The re-sults using measurements DY stated that dividendpolicy does not affect the value of the company.While for measurement Dummy, dividend poli-cies negatively affect the value of the company.The inconsistent results make it clear that the dif-ference in the measurement variable is the cause


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of the inconsistency of the results of research onthe relationship between the dividend policy andcorporate value.

Another study using a different measure-ment of dividend policy and the conclusion is thedividend policy has positive effect on corporatevalue. The study was conducted Juhandi (2013)were used Tobin’s Q as a measurement of the valueof the company and Dividend Payout Ratio (DPR)for the measurement of dividend policy.

The difference results of these studies dueto variations in the measurement value of the com-pany. After analyzing the effects meta-moderation,it can be concluded that both the measurementmodel of the dividend policy and corporate valuemay be moderating variable relationship betweenthe 2 variables. Based on the research sub-groupmoderating effects, significant positive results inaccordance with the general meta-analysis is thePBV, Tobin’s Q, and MVE for enterprise valuemeasurement model. Measurement model is a sig-nificant positive dividend policy according to thegeneral meta-analysis is the DPR and the Dummy.These ratios can be taken into consideration forthe company in determining the optimal dividendpolicy so as to increase the value of the company.Investors can also pay attention to the ratios inthe financial statements of companies to choose acompany that has a high prospect of generatingthe maximum profit.

Sensitivity Analysis

The results of meta-analyzes on the publica-tion status on the Table 3 stated there was no publi-

cation bias between study published by researchthat is not published. Consistent with the generalresults of meta-analysis, the results of the analysisof the average correlation (]) for the publicationof research is 0.0995, whereas for the non-publica-tion research is 0.0608.

Based on these results it can be concludedthat the effect of dividend policy on corporatevalue is not affected by the type of studies, bothpublished and unpublished. Quality of studies isone of the things that can lead to publication biasin meta-analysis. Therefore, non-published re-search may be control in the meta-analysis, so thatthe research publishing bias can be overcome.

CONCLUSION AND SUGGESTIONS

Conclusion

After a meta-analysis on the effect of divi-dend policy on corporate value, there are severalfindings which are the conclusions of this study.The results of the study found that: (1) in general,dividend policy can increase the corporate value.The results are consistent with the theory of theDividend Signaling Model by Bhattacharya (1979).The findings show that in Indonesia, in general,an increase in dividend payment followed by arise in the value of the company. Investors likecompanies that pay dividends on a regular basisbecause it shows that the company will be able toimprove the life of the shareholders. However,the result of this research focuses on fundamentalaspects, namely financial ratios to determine theeffect of dividend policy on corporate value.

Table 3. Meta-AnalysisPublishing Status ∑ Ni K study r Min To Max x2k-1 General Meta-Analysis 10816 74 0.0745 0.0111 - 0.1378 427.5249 Publishing 3825 32 0.0995 -0.0154 - 0.2144 260.7189 Non Publishing 6991 42 0.0608 0.0266 - 0.0949 164.7473


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Technical aspects are also the basis for investorsto take a decision cannot be done due to inad-equate research data; (2) based on the test resultsof the moderating effects, the effect of dividendpolicy on corporate value is moderated by the cor-porate value measurement model and the measure-ment model on dividend policy. That is becausethe test results using the moderating effect incon-sistent measurement of the corporate value. Modelmeasurement of the corporate value significantlymoderating the effect of dividend policy on cor-porate value is Price to Book Value (PBV), Tobin’sQ, and Market Value of Equity (MVE). Model mea-surements dividend policy significantly moderat-ing the effect of dividend policy on corporate valueis Dividend Payout Ratio (DPR) and the Dummy.Based on these results, it is evident that the incon-sistencies in previous studies because of differencesin the measurement of the dependent variable andindependent variables. This is consistent withmeta-analysis of studies that have been done be-fore (Ahmed & Courtis, 1999; Eny, 2013; Fanani,2014; Handayani, 2015).

Suggestions

During the study, some of the limitationsto be found are described below. For further re-search, it will be given some suggestions that canbe used inimproving these limitations. Here’s anexplanation of these limitations and suggestions:(1) previous studies on the effect of the dividendpolicy and the corporate value does not displaythe value of r-statistics and values that can beconverted into r-statistics, variable measurementdata and detailed statistical results, thus it reduc-ing the number of samples which can be processedinto a meta-analysis. Future studies are expectedto use the data for more research with measure-ment models are more varied, so as to find outthe ratio or other types of measurements that af-fect the value of the company; (2) research in In-donesia mostly based on fundamental analysis, so

less representing the actual capital market condi-tions that occurred in Indonesia. And to be ableto assess a company must use fundamental analy-sis and technical analysis. Future studies are ex-pected to use the research data using technicalanalysis to look at the corporate value, so the analy-sis of the effect of dividend policy on corporatevalue can be seen in its entirety.

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dividend policy and corporate value (a meta-analysis)

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