The Influence of Return on Equity, Debt Ratio and Dividend Policy on Company Value

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Return on equity significantly enhances company value, indicating effective profitability management.
Data analysis from manufacturing firms (2019-2022) confirms that dividend policy and debt ratio do not significantly impact firm value.
Study utilized various industrial sector companies listed on IDX, ensuring a broad analysis across diverse sectors.
Findings support the notion that profitability is a more crucial determinant of company value than debt management or dividends.

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Analysis shows return on equity positively influences company value, while debt ratio and dividend policy have no effect.

Diana et al. (2025) studied this question.

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