The Effect of Standardization of Investment and Dividend Decisions on Company Financial Performance

Abstract

Financial performance reflects a company’s ability to generate profit and manage resources effectively. This study aims to analyze the influence of investment decision standardization and dividend policy standardization on corporate financial performance. The research uses a quantitative approach with secondary data obtained from the financial statements of companies during the observation period. The sample was selected using purposive sampling based on the availability of complete financial data. The independent variables in this study are investment decision standardization and dividend policy standardization, while financial performance is measured using Return on Assets (ROA). Data were analyzed using descriptive statistics and regression analysis to examine the relationship between the variables. The results show that both investment decision standardization and dividend policy standardization have a positive effect on financial performance. Companies that implement consistent investment decisions and stable dividend policies tend to achieve higher profitability. These findings indicate that structured financial decision-making processes play an important role in improving corporate financial performance.