The Impact of Investment Decisions, Capital Structure, and Dividend Policy on Company Value with Macroeconomic Factors as Moderating Factors

Abstract:Purpose of the Study: The purpose of this study is to examine and analyze the effect of investment decisions on firm value; the effect of capital structure on firm value; the effect of dividend policy on firm value; the effect of macroeconomics on firm value; the effect of macroeconomics on firm value moderating investment decisions on firm value; the effect of macroeconomics on firm value moderating capital structure on firm value; and the effect of macroeconomics on firm value moderating dividend policy on firm value.Methhodology: The research sample consists of 50 enterprises with three years' worth of financial statements.September 2021 to January 2022: Research Period Using the SmartPLS 3 program, perform structural equationmodeling (SEM) analysis.Main Findings: The study's findings indicate that investment decisions have a positive and significant effect on firm value; capital structure policy has no significant effect on firm value with a negative relationship; dividend policy has a positive and significant effect on firm value; macroeconomics has no significant effect on firm value with a positive relationship direction; macroeconomics has no significant effect on firm value inmoderating investment decisions with a positive relationship direction.Applications of this Study: Theoretically, this paper explains how macroeconomic factors serve as a moderator of the relationship between investment decisions, capital structure, dividend policy, and firm value. In practice, capital market participants can use the research findings as a starting point for making stock investment decisions in the capital market, taking into account both macroeconomic and microeconomic factors affecting the country's economy, as well as company microeconomic factors that may have a direct or indirect effect on future company value growth. emerges as a barometer of shareholder welfare.Novelty/ Originality of This Study: This study examines the relationship between microeconomic factors(factors that a firm can control), such as investment decisions, capital structure, and dividend policy, andmacroeconomic factors (state fundamentals), as proxied by inflation, interest rates, currency exchange rates, andeconomic growth as a moderating variable.