Author(s): Kamphol Panyagometh
This study aims to examine and analyze effects of financial leverage, profitability, firm size, and investment opportunity on dividend policy, and effect of all those variables on firm value using path analysis. The observations were all non-financial companies that went public and listed on the Stock Exchange of Thailand during 2010Q1 to 2021Q1. The research also considers idiosyncratic nature of firms in different sectors in which analysis in non-financial companies is categorized into sectors: agro & food industry, consumer products, industrials, property & construction, resources, services, and technology to examine determinants of dividend policy and firm value. Research results suggest that financial leverage has a negative influence on dividend policy of firms in certain industries but poses no effect on firm value of companies listed on the Stock Exchange of Thailand. Profitability, on the other hand, shows positive significance on both dividend policy and firm value of firms in Thai stock market. Meanwhile, firm size, investment opportunity, and dividend policy have a positive impact on non-financial companies in the Stock Exchange of Thailand only in certain sectors.