Do Funding Decisions, Dividend Policy, and Investment Decisions effect on Islamic Firm's Value?

This research aims to examine the influence of Funding Decisions, Dividend Policy and Investment Decisions on Company Value in Companies listed on the Jakarta Islamic Index (JII) for the 2017-2020 period. This research uses quantitative research with a descriptive research strategy. The population of this research is 30 companies listed on the JII for the 2017-2020 period. The sample selection in this study used purposive sampling with a total sample of 22 companies, so the number of observations was 88. The data used is secondary data. Data collection techniques through the company's official website. The research results prove that Funding Decisions have a significant positive effect on Company Value, Dividend Policy has a significant and negative effect on Company Value, and Investment Decisions have a significant and positive effect on Company Value. The managerial implication in this research is that the capital structure chosen can influence the company's cost of capital. Dividend decisions can also affect a company's share price. It is important to conduct careful analysis and consider the various factors that influence these decisions to ensure that the company operates efficiently and can increase value for shareholders.


Introduction
states that in line with the times, the economic sector has undergone quite rapid changes, characterized by economic transaction activities, one of which is investing capital in a capital market with the aim of investors making a profit from their investment activities, while the company can manage these funds for the company's operational activities.With the development of the capital market, the Indonesian Stock Exchange and PT.Danakersa Management Investment collaborates to realize sharia investment, namely the Jakarta Islamic Index (JII) so that the Indonesian people can participate in investing in the capital market, which is free from speculation and ribawi elements.In the Jakarta Islamic Index (JII), there are 30 companies based on Sharia principles that have the most liquid shares and have large market capitalization.The assessment process for the Jakarta Islamic Index (JII) is carried out by the National Sharia Council (DSN) every semester or every January and June (Susetyo, 2017).
Company value can be reflected through the company's ability to distribute dividends to shareholders.The decision that determines the distribution of profits in the form of dividends or rather by retaining the profits obtained by the company as funds to finance the company's investment in the future is called dividend policy.
The dividend policy is the most important financial policy in a company because it provides information about the company's performance in terms of future profit growth so that it can attract investors' interest in investing, which will affect the value of the company (Kurniawan & Putra, 2019).Investment activities carried out by the company are expected to provide optimal profits, which are reused for investment activities or distributed to shareholders in the form of dividends.Funding decisions are one of the most critical and labor-challenging decisions for financial managers.This is because this decision has a direct impact on the company's capital structure.(Sitorus et al., 2020) Found that financial leverage has a positive effect on company value.From this research, it means that the higher the debt or the bigger the funding decisions made by the company, the higher the company value.This indicates that funding decisions have a positive effect on company value.Dividend policy is the presentation of profits paid by the company to shareholders in the form of cash dividends, maintaining dividend stability from time to time, distribution of stock, and treasury dividends.Management policy regarding profits obtained by the company in general in one year is to be distributed as dividends or as retained earnings to encourage operational activities (Harmony, 2017).Deomedes & Asma (2018) stated that investment decisions are known as capital budgeting decisions, not only about the acquisition of fixed assets but also include all decisions in which there is a commitment for relatively large funds at this time.The expected benefit from this decision is the creation of additional funds over a relatively long period of time.Maulana et al. (2018) there are several concepts that describe company value, including nominal value, intrinsic value, liquidation value, book value, and market value.Nominal value is the value stated formally in the company's articles of association.Market value, which is often called the exchange rate, is the price that occurs from the bargaining process on the stock market.Book value is the company value calculated using basic accounting concepts.Liquidation value is the sale value of all company assets after deducting all obligations that must be fulfilled.And then there is intrinsic value which is considered the most representative concept of a company.Company value in the intrinsic concept is not just the price of a set of asset values but the value of the company as a business entity that can generate profits in the future.

Literature Review and Hypothesis
Signal Theory According to Anggraini (2018), signaling theory is a signal that contains information about a company in which the company management informs about the company's performance because, basically, the management has accurate information about the factors that influence the value of the company, of course, investors need information about the company in determining the decision to invest capital in the company.

Funding Decisions
Funding decisions are a company's way of funding its operational activities where the company's funding sources can come from two sources, namely internal sources (retained earnings) and external company sources (debt and capital) (Frank et al., 2020;Martinez et al., 2019;Rao et al., 2019;Zeidan et al., 2018).If the company's funding is mostly financed by debt, it will have an impact on changes in company value because it can save on tax payments.However, if the company uses too much debt and cannot fulfill its obligations to pay the debt, financial problems will arise for the company and trigger bankruptcy (Kythreotis et al., 2017).According to Agung et al. (2021), Harnida (2021), and Risal & Endang (2017), funding decisions within the company are decisions regarding the source of funds used for the company's operational activities, where the company's funding sources are divided into two, namely internal and external funds.Internal funding sources come from undivided profits or profits retained by the company (retained earnings).In contrast, external funding comes from debt and additional capital from owners or new share issuance and bond sales.

Dividend Policy
This dividend policy is about whether the company will pay dividends or not.Signal theory was developed by Ross in 1977.Dividend payments made by companies can serve as a good signal and are conveyed by management to public investors regarding the company's cash flow prospects.So, dividends can be used as a tool to reduce information asymmetry.Good quality companies will deliberately give signals in the form of dividend payments, namely in the hope that the market, which needs information about a company, can differentiate between good and bad quality companies (Nur, 2018).Dividend policy is the presentation of profits paid by the company to shareholders in the form of cash dividends, maintaining dividend stability from time to time, distribution of stock, and treasury dividends.Management policy regarding profits obtained by the company in general in one year is to be distributed as dividends or as retained earnings to encourage operational activities (Harmony, 2017).

Investment & decision
Deomedes & Asma (2018) stated that investment decisions are known as capital budgeting decisions, not only regarding the acquisition of fixed assets but also include all decisions in which there is a commitment of relatively large funds at this time.The expected benefit from this decision is the creation of additional funds over a relatively long period.In Indonesia, the industrial revolution is developing very rapidly; this has led to competition between companies; companies must work more efficiently and must be able to develop appropriate strategies.The rapid development of an industry will be an attraction that can encourage increased economic growth in a country.Investors are starting to look to the capital market to invest their funds in companies that have gone public.The main goal of investors investing their funds is to obtain a profit or rate of return on investment, either in the form of retained earnings (capital gains) or dividends that the company will distribute to investors (Akbar & Fahmi, 2020) Firm Value Company value is the price that potential investors are willing to pay if the company is sold.So it can be said that if a company has gone public, the value of the company will be reflected in the share price, meaning the higher the rate of return on profits that investors will obtain, this will also increase the value of the company which aims to improve the welfare of shareholders, but if the share price decreases, then there will be a low level of profits obtained by shareholders, causing a decrease in the value of the company (Franita, 2018).The picture above shows that the research shows a relationship between the independent variables, namely Funding Decisions, Dividend Policy, and Investment Decisions, and the dependent variable, namely Company Value.

Research Hypothesis
The Effect of Funding Decisions on Company Value Funding decisions are a company's way of funding its operational activities where the company's funding sources can come from two sources, namely internal sources (retained earnings) and external company sources (debt and capital) (Frank et al., 2020).This funding decision is often referred to as capital structure policy because, in this decision, financial managers are required to consider and analyze the sources of funds used by the company to pay for investment needs.DER is a comparison between the company's total debt and its capital (equity).So, if the DER value increases, the PBV will also increase.Companies that raise debt are seen as companies that are confident about the company's prospects, and the company is able to pay off short-term and longterm debt when it is due.Thus, investors believe that the company is able to increase company value by taking company shares.Thus, funding decisions influence company value.Based on the results of this research, this research is in line with research conducted, which states that there is a positive and significant influence between funding decisions on company value.This research is also in line with research conducted, which states that there is a positive and significant influence between funding decisions on company value.

H1: Funding decisions influence company value
The Effect of Dividend Policy on Company Value The dividend policy is the most important financial policy in a company because it provides information about the company's performance in terms of future profit growth so that it can attract investors' interest in investing, which will affect the value of the company (Kurniawan & Putra, 2019).Based on the results of this research, this research is in line with research conducted, which states that there is a positive and significant influence between dividend policy on company value.This research is also in line with research conducted, which states that There is a positive and significant influence between dividend policy on company value.

H2: Dividend policy influences firm value
The Influence of Investment Decisions on Company Value Deomedes & Asma (2018) stated that investment decisions are known as capital budgeting decisions, not only about the acquisition of fixed assets but also include all decisions in which there is a commitment for relatively large funds at this time.The expected benefit from this decision is the creation of additional funds over a relatively long period.This is because investment decisions involve the funds used for investment, the type of investment being made, and the investment risks that may arise.The investment receipts that will be received come from the projected profits on the investment.Every use of investment funds is intended to increase the prosperity of investors.If the investment is carried out in the long term, then the concept of the time value of money is very important to pay attention to.Investment decisions are the task of the financial manager; this decision is very important as the company increases and develops.As the company develops, management is required to make investment decisions, investment decisions taken such as opening branches, expanding the business, or establishing other companies.Based on the results of this research, this research is in line with research conducted, which states that there is a positive and significant influence between funding decisions on company value.This research is also in line with research conducted, which states that there is a positive and significant influence between funding decisions on company value.H3: Investment decisions influence company value

Research Strategy and Research Methods
One way for researchers to collect data for research is by using research methods.Basically, a research method is a scientific way to collect data that needs to be researched, which functions to obtain results from research activities and achieve the intended goals.In general, scientific methods used in research are classified into rational, empirical, and systematic.Therefore, the existence of a research method can provide an impact on a variable being studied and then obtain a conclusion from a reflection of the object being studied (Sugiyono, 2018).The method used in this research uses associative.The associative approach is to explain a research problem that is related to two or more variables.Kurniawan and Puspitaningtyas (2016).Therefore, this research consists of variables that influence (independent variables) and variables that are influenced (dependent variables) Kurniawan and Puspitaningtyas (2016).Therefore, the researcher's aim in this research is to carry out a hypothesis test that describes the influence relationship between two or more variables.The independent variables consist of funding decisions, dividend policy, and investment decisions, and the dependent variable is company value.

Population and Sample
Therefore, the population consists not only of people but of subjects and objects as well as other natural objects.So, the population is not just the number of objects or subjects studied and studied but includes all classifications of the subjects or objects within it.In this research, the population used is companies registered on the Jakarta Islamic Index for the 2017-2020 period.

Data analysis method
The data processing research technique that will be used in the research includes data calculations and research model analysis using statistical data, which plays a role in obtaining a result from the data obtained so that a conclusion can be drawn.Thus, in order to obtain research results, researchers used statistical methods assisted by the Eviews 10 software program.
Model Regresi Data Panel

Descriptive Statistical Analysis
According to Sugiyono (2017), descriptive statistics are statistics that function as a data analysis tool by explaining data that has been collected by researchers without having to conclude.Classification in descriptive statistics is presenting a presentation of data through tables, pie charts, graphs, pictograms, percentiles, and deciles, calculating mean, mode, and median, and calculating the spread of data through average and standard deviation.Descriptive statistical analysis is intended to provide a general overview or explanation of the data from a variable studied, which includes independent variables, namely Funding Decisions, Dividend Policy, and Investment Decisions, as well as a fixed (dependent) From the results of the descriptive statistics above, it can be concluded that the dependent variable, Company Value, showed a minimum value of 0.04 in 2019.The maximum value is 12.92 in 2019, and the mean (average) of the company has a Company Value of 1.92.Then, the Company Value in this research has a standard deviation of 1.99.The independent variable, namely Funding Decisions, obtained a minimum value of 0.18 in 2017.Meanwhile, the maximum value in 2019 was 8.87.The mean (average) value of Funding Decisions is 1.16.Then, the Funding Decision in this research has a standard deviation of 1.18.The independent variable, namely Dividend Policy, obtained a minimum value of 0.07 in 2020.Meanwhile, the maximum value in 2019 was 64.45.The mean (average) value of the Dividend Policy is 3.62.The Dividend Policy in this research has a standard deviation of 7.83.The independent variable, Investment Decisions, obtained a minimum value of 0.003.Based on the multicollinearity test table above, the correlation between independent variables does not exceed 0.80, so there is no multicollinearity between independent variables in this study.Based on the table above, the heteroscedasticity test shows that the value of the Chi-Square probability is 0.07.When compared with the confidence level used, the significance value of the test results is greater than the confidence level value of 0.07 > 0.05.Based on this information, it can be concluded that there is no problem with heteroscedasticity.Based on the Random Effect Model table above, we get a constant value of 0.77 with a probability value of 0.00.The results of the Random Effect Model (REM) regression equation have an Adjusted R-squared value of 0.73, which illustrates that the variables Funding Decision, Dividend Policy, and Investment Decision, with a percentage of 73%, and the remaining 27%, are influenced by other independent variables that were not examined in this research.Based on the results from the table above, it is known that 2 tests show the same results, namely the Chow test and the Hausman test; both tests show that the results are for choosing the Fixed Effect Model (FEM), while the Lagrange multiplier test shows the results for choosing the Random Effect Model (REM).From these results, it can be concluded that the Fixed Effect Model (FEM) is the appropriate model to use in this research.

Model Selection Conclusion
Chow Test (Chow Test) Based on the Chow test table above, it can be concluded that common effect model vs. the fixed effect model above, the cross-section F probability value (P-value) is 0.00 ≤ 0.05, so the hypothesis of H0 is rejected, and H1 is accepted, which means the Fixed Effect Model (FEM) is more appropriate to use.Based on the table of results from the Hausman test above, the random effect model (REM) vs. fixed effect model (FEM) above obtained a random cross-section probability value (P-value) of 0.97 > 0.05, so the hypothesis of H0 is accepted, and H1 is rejected which is This means that the Random Effect Model (REM) is more appropriate to use.Based on the table of results from the Lagrange multiplier test, random effect model vs. common effect model above, the Breusch-food cross-section results < 0.05, namely 0.00 < 0.05, so the hypothesis of H0 is rejected, and H1 is accepted, which means the Random Effect Model (REM) model is better and appropriate to use.Based on the table above, the coefficient of determination test is based on the Adjusted-R Square value of the regression model carried out.The value of the Adjusted-R Square is 0.85 or 85%, which means that all independent variables are able to explain 85% of the variation in the dependent variable.In comparison, the remaining 0.15 or 15% is explained by other variables not examined by the researcher.

Discussion
The Effect of Funding Decisions on Company Value Table 12 presents that the Funding Decision variable has a significant positive effect on Company Value, and H1 is accepted.Funding decisions have a significant positive effect on company value, indicating that the company's decision regarding the composition of funding to be used will influence company value.Greater profits will also have an impact on the market value of the company's shares, so this will have an impact on increasing the value of the company.The higher the company value, the more investors will be interested in investing.Based on the results of this research, this research is in line with research conducted, which states that there is a positive and significant influence between funding decisions on company value.This research is also in line with research conducted, which states that there is a positive and significant influence between funding decisions on company value.

The Effect of Dividend Policy on Company Value
Based on Table 12, the Dividend Policy variable has a significant negative effect on Company Value, and H2 is accepted.Dividend policy has a significant negative effect on company value.This result indicates that companies that distribute low dividends will have investors less interested in investing their capital in the company because investors have less trust in the company due to the company's poor performance.Suppose the company distributes high dividends to shareholders.In that case, it can attract the interest of investors to invest their capital in the company because this gives investors a signal that the company has a high amount of retained earnings so that the company has sufficient funds to optimize the company's growth.Based on the results of this research, this research is in line with research conducted by Ratnasari et al. (2020), which states that there is a negative and significant influence between dividend policy on company value; this is in line with research conducted by Septariani (2017), that debt policy (DER) has a negative relationship to company value.

The Influence of Investment Decisions on Company Value
Based on Table 12 concluded that the Investment Decision variable has a significant positive effect on Company Value; H1 is accepted.Investment decisions have a significant positive effect on company value, indicating that investment decisions taken by the company will have an impact on increasing or even decreasing company value.The higher the dividend distributed by the company contains a positive signal for investors, which will have an impact on increasing the value of the company.Based on the results of this research, this research is in line with research conducted, which states that there is a positive and significant influence between funding decisions on company value.This research is also in line with research conducted, which states that there is a positive and significant influence between funding decisions on company value.

Conclusion
Funding decisions have a significant positive effect on value.If you look at the structure of the capital owned by the company, it can be concluded that the risk structure cannot pay off debt.If the risk of non-payment of debt is smaller, it will increase the value of the company.So if the higher the funding is, the company value will increase.Dividend Policy has a significant negative effect on Company Value.This finding shows that the lower dividends distributed to shareholders do not guarantee an impact on company value.So the lower the value of the dividend policy, the more the company value will increase.Investment decisions have a significant positive effect on company value.This result shows that the size of the market's appreciation of the company's ability to generate profits will increase the company's value.So the more investment decisions increase, the more the company value will increase.Funding Decisions, Dividend Policy, and Investment Decisions simultaneously influence Company Value.
The managerial implication in this research is that the capital structure chosen (for example, the debt-to-equity ratio) can influence the company's cost of capital.Managers must consider the effect of using debt (debt) on interest costs and bankruptcy risk.Dividend decisions can also affect the company's share price.A consistent dividend policy and in line with investors' expectations can support a good valuation for the company's shares.Risk is also an important consideration in making investment decisions.Managers must consider the level of risk associated with each project and how to manage those risks effectively.By understanding the managerial implications of funding decisions, dividend policies, and investment decisions, managers can optimize overall company value.It is important to conduct careful analysis and consider the various factors that influence these decisions to ensure that the company operates efficiently and can increase value for shareholders.

Recommendations
In the future, this research is expected to be able to present more precise research results with several inputs regarding several things, including For investors, it is recommended to be more careful in making decisions to invest, and investors should not be easily tempted by the soaring level of company profits in financial reports.High because this can be based on management who may make mistakes in preparing financial reports.For future researchers, if they have similarities in research, they can add company sample categories such as the Indonesian Sharia Stock Index (ISSI), IDX-MES BUMN 17, and Jakarta Islamic Index 70 (JII70).Apart from that, adding other variables, namely company size, profitability, institutional ownership, and board of directors size, can expand the research results.Companies should evaluate company performance periodically in order to control the dominant factors that can influence company value.Apart from that, companies are expected to provide the necessary data during the preparation of financial reports so that financial reports can be published and attract the interest of potential investors.

Figure
Figure 1.Research Conceptual Framework variable, namely Company Value.The descriptive statistics used in this research are maximum, minimum, mean, and standard deviation values.The maximum value is the highest value among all members in a data group, while the minimum value is the lowest value among all members in a data group.Then, the mean is the average value of a group of data.Standard deviation is the square root value of a variance.From the results of descriptive statistical testing on these 4 (four) variables with research sample observations totaling 88, descriptive statistical results were obtained according to the table below.

Table 3 .
Heteroscedasticity Test Based on the table above, the autocorrelation test uses the Breuschgodfrey test; it can be concluded that the Chi-Square probability value is 0.38, which is greater than the predetermined significance value, namely 0.38 > 0.05.Based on this information, there is no autocorrelation problem.

Table 8 .
Common Effect Model Panel ResultsBased on the table above, the Common Effect Model (CEM) gets a constant value of 0.52 with a probability value of 0.05.The results of the Common Effect Model (CEM) equation have an Adjusted R-squared value of 0.72, which illustrates that the variables Funding Decisions, Dividend Policy, and Investment Decisions have a percentage size of 72%, and the remaining 28% are influenced by other independent variables not examined in this research.

Table 11 .
Model Conclusion Results

Table 12 .
Results of Panel Data Regression Analysis