The Effect of Profitability, Debt Policy, And Liquidity on Corporate Values with Dividend Policy as Moderating Variables

Abstract

This research aimed to determine the effect of profitability, debt policy, and Liquidity on firm values with dividend policy as moderated variables. The subject in this research uses manufacturing companies listed on the Indonesia Stock Exchange. The data used are secondary in the form of annual reports in 2016 2018. The sampling technique used in this research was purposive sampling. Forty-two companies meet the criteria as a research sample. Data analysis techniques used in this research is multiple regression analysis using the absolute difference method. The result shows that profitability has a positive and significant effect on firm value. In contrast, debt policy and Liquidity have a negative and significant effect on firm value. The dividend policy can moderate the relationship between profitability and firm value. Dividend policy is able to moderate the relationship between debt policy and firm value. The dividend policy is not able to moderate the relationship between Liquidity and firm value.