THE IMPACT OF DIVIDEND POLICY ON FIRM VALUE: THE MODERATING EFFECT OF CORPORATE SOCIAL RESPONSIBILITY

Abstract

The fluctuation in firm value among non-cyclical consumer companies on the Indonesia Stock Exchange during 2021–2024, along with the varying trends in dividend policy and CSR disclosure, raises questions about the extent to which these factors influence investor perceptions of firm value. This study examines the effect of dividend policy on firm value, with Corporate Social Responsibility (CSR) as a moderating variable, using a quantitative approach on 20 sample companies selected through purposive sampling. Dividend policy is measured by the Dividend Payout Ratio (DPR), CSR by the GRI 2021 standards, and firm value by Tobin's Q, with data analyzed via IBM SPSS 27. The results show that dividend policy has a significant negative effect on firm value, as investors tend to view dividend payments as a reduction in funds for future growth rather than a positive signal. CSR is found unable to moderate this relationship, indicating that CSR disclosure has not yet strengthened the credibility of dividend signals among investors.