The Influence of Profitability, Liquidity, and Leverage on Firm Value: The Moderating Role of Dividend Policy in India It Firms
摘要
This study investigates the impact of profitability (ROA), liquidity (CR), leverage (DER), and dividend policy (DPR) on firm value (BVPS) in IT companies listed on the National Stock Exchange (NSE). It also examines the moderating effect of DPR on the relationship between ROA, DER, and BVPS. Using a sample of 10 firms over a specified period, multiple linear regression (MLR) and moderated regression analysis (MRA) were applied to assess these relationships. The findings of the study reveal that leverage and dividend payout ratio have a significant negative effect on the value of the firm, while the profitability and liquidity show varying degree of influence. The moderating role of dividend payout is evident in its interaction with profitability and leverage, reinforcing its impact on firms’ valuation. The Statistical models employed—multiple linear regression (MLR) and moderated regression analysis (MRA)—are robust in capturing these relationships, despite some concerns regarding multicollinearity. These results provide valuable insights for Information Technology firms in optimizing capital structure, balancing dividend policies, and enhancing the firms value through strategic financial decision-making.