Effect of Liquidity, Leverage and profitability to The Firm Value (Dividend Policy as Moderating Variable) in Manufacturing Company of Indonesia Stock Exchange

Abstract

Firm value is very important because the high value of the firm which will be followed by higher shareholder wealth. The higher the stock price the higher the value of the company, to achieve general corporate value investors give up their management to professionals. This study aims to determine the effect of liquidity, leverage, and profitability on the value of the company's with the dividend policy as a moderating variable.

The populations in this study are all manufacturing companies listed on the BEI. Sampling method performed with saturated sampling method, and based on predetermined criteria, the number of samples is a sample of 30 manufacturing companies consecutive dividend which is obtained from the Indonesian Stock Exchange (www.idx.co.id) and ICMD. Hypothesis testing studies used analytical techniques and moderated multiple regression analysis, with application tool of SPSS (Statistical Product and Service Solutions).

The results showed that: 1) liquidity not significant positive effect on firm value, 2) dividend policy is not able to significantly moderate the effect of liquidity on the value company, 3) leverage not significant negative effect on firm value, 4) dividend policy is not able to significantly moderate the effect of leverage on firm value, 5) Profitability significant positive effect on firm value, 6) dividend policy is not able to significantly moderate the effect of profitability on firm value.

The results showed that profitability is only significant positive influence to the value of the company. This means that high profitability can provide added value to the company, which is reflected by the increasing value of Tobins Q. It is suggested in subsequent studies to add other moderating variables in addition to dividend policy used in this study

Keywords: Liquidity, Leverage, profitability, Firm value and Dividend Policy