Investment Decisions of Manufacturing Companies Listed on the Indonesia Stock Exchange: A Study on the Role of Dividend Policy and Total Asset Turnover as Moderating Variables
DOI:
https://doi.org/10.30651/iconemba.v2i1.30519Keywords:
Investment Decisions, Devidend Policy, Total asset TurnoverAbstract
This study aims to analyze the effect of dividend policy on investment decisions in manufacturing
companies listed on the Indonesia Stock Exchange, as well as to examine the moderating role of Total Asset Turnover.
The analytical method used is multiple linear regression and Moderated Regression Analysis (MRA). The findings
indicate that dividend policy does not have a significant effect on investment decisions, as reflected by a significance
value of 0.098 (>0.05), meaning that dividend distribution has not been able to encourage investment activities
effectively. Total Asset Turnover is also found to have no direct significant effect on investment decisions, with a
significance value of 0.415 (>0.05). However, the interaction results reveal that Total Asset Turnover moderates and
strengthens the relationship between dividend policy and investment decisions, shown by a significance value of 0.040
(<0.05). These results suggest that the impact of dividend policy on investment decisions becomes more optimal when
companies improve the efficiency of asset utilization to support operational performance.
References
[1] Sitompul, S., & Nasution, S. K. (2020). Analysis Net Profit, Dividend, Debt, Cash Flow, And Capital Net Working That
Influence Investment Decision On Manufacturing Companies. International Journal Of Research And Review, 56.
[2] Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management. Cengage Learning.
[3] Dewi, N. S., Kepramereni, P., & Yuliastuti, I. N. (2020). Analisis Faktor- Faktor yang Berpengaruh
Terhadap Keputusan Investasi Pada Perusahaan Perbankan Di Bursa Efek Indonesia.
[4] Rahayu, M., & Utami, N. E. (2021). Faktor-Faktor Yang Mempengaruhi Keputusan Investasi. Jurnal IKRA-ITH Ekonomika Vol 4 No 2, 95-104.
[5] Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2016). Corporate Finance. McGraw-Hill Education
[6] Brigham, E. F., & Houston, J. F. (2021). Fundamentals of Financial Management (15th ed.). Cengage Learning. [7] Baker, H. K., & Powell, G. E. (2020). Dividend Policy: Theory and Practice. Oxford University Press.
[8] Patin, J.-C., Rahman, M., & Mustafa, M. (2020). Impact of Total Asset Turnover Ratios on Equity Returns: Dynamic Panel
Data Analyses. Journal of Accounting, Business and Management.
[9] Puspitae, Z., Zulaika, T., Rahmiati, R., Fransiska, C., & Angela, L. M. (2025). Do financial signals matter? The influence of profitability, stock price, and dividend policy on investment decisions in Indonesian manufacturing firms. Journal of Accounting and Investment, 26(1), 298–313.
[10] S. L. Y. Prastyatini & A. Vanny. (2024). Dividend policy: Total asset turnover, return on investment against stock returns
(food & beverage companies Indonesia 2018-2022). Journal UII, 2, 773-782.
[11] Sugiyono. (2017). Metode Penelitian Kuantitatif, Kualitatif, Dan R&D. Bandung: Alfabeta.
[12] Putri, A., & Suryanto, D. (2021). Dividend policy and investment decisions in emerging markets. Journal of Finance and
Investment, 9(2), 112–120.
[13] Rahmawati, N. (2020). Dividend payout and market response: Evidence from Indonesia. Indonesian Journal of Economics,
15(1), 67–76.
[14] Wijaya, F., & Santoso, B. (2019). Dividend relevance and investment responses in manufacturing companies. Journal of
Business and Accounting, 21(3), 245–259.
[15] Utami, R., & Hidayat, M. (2020). Asset turnover and investment decisions: Empirical evidence in asset-intensive industries.
Accounting and Business Review, 18(2), 98–107.
[16] Susanto, R., & Hardinata, Y. (2021). Asset efficiency and investment growth in manufacturing sector. International Journal of Business Performance, 13(1), 52–61.
[17] Husein, M., & Harahap, S. (2022). Moderating role of asset turnover in dividend-investment relations. Journal of Financial
Decision Making, 4(1), 33–44.
[18] Sari, D., & Pratama, A. (2020). Dividend signaling, asset utilization, and investor response. Journal of Corporate Finance
Studies, 5(2), 101–115.
[19] Nugroho, T. (2021). Testing TATO as a moderator in investment decision models. Journal of Accounting Research, 7(1),
74–83.
