The Effect of Profitability and Liquidity on Firm Value with Dividend Policy as an Intervening Variable

Abstract

This study aims to examine the effect of Profitability and Liquidity on Firm Value with Dividend Policy as an Intervening Variable (Case Study of Property and Real Estate Companies listed on the IDX). This study uses secondary data from the company's financial statements in 2015-2019. The population used in this study was 48 property and real estate companies listed on the IDX. The sample consisted of 9 companies; the sample was selected using purposive sampling technique. The tools used in data processing are using SPSS Version 25. The analytical method used is the Classical Assumption Test: Normality Test, Multicollinearity Test, Heteroscedasticity Test, and Linearity Test. Hypothesis testing uses Partial Test (T Test) and Determinant Coefficient Test (R2) and uses Path Analysis. The results found of this study are that Profitability has a positive and significant direct effect on Firm Value of 0.258. Second, Liquidity has a positive and significant direct effect on Firm Value of 0.300. Third, Dividend Policy has a positive and significant direct effect on Firm Value of 0.712. Fourth, Profitability has a positive and significant direct effect on Dividend Policy of 0.463. Fifth, Liquidity has a positive and significant direct effect on Dividend Policy of 1.086. Sixth, Profitability has an indirect effect on Firm Value with Dividend Policy as an intervening variable of 0.330. Seventh, Liquidity has an indirect effect on Firm Value with Dividend Policy as an intervening variable of 0.773