The objective of this research is to get an understanding on the effect of investment decisions, and dividend policy on financing decisions using Structural Equation Model (SEM). It is expected that this model will give more comprehensive analysis on the effect of the investment and dividend on financial decisions which includes the direct or indirect effect on one of the financial decision against the other financial aspects. This analysis was based on target population of 259 public companies at Jakarta Stock Exchange, with following finding.
This research provides investment decisions has a direct and indirect positive effect on the financiungl decisions through dividend policy. And then dividend policy has direct positive effect on financing decisions. |