Research Paper
Year: 2021 | Month: December | Volume: 8 | Issue: 12 | Pages: 328-337
DOI: https://doi.org/10.52403/ijrr.20211241
The Effect of Profitability, Liquidity, and Capital Structure on Firm Value with Dividend Policy as a Moderating Variable in the Company Mining Listed on the Indonesia Stock Exchange
Emelia Febrinawaty Cordiaz1, Erlina1, Chandra Situmeang1
1Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia
Corresponding Author: Emelia Febrinawaty Cordiaz
ABSTRACT
The purpose of this study is to examine and analyze the effect of profitability, liquidity, and capital structure on firm value in mining companies listed on the Indonesia Stock Exchange and to test whether dividend policy can moderate the relationship between the independent variables and the dependent variable.
The population of this study is all mining companies listed on the Indonesia Stock Exchange from 2011 to 2019. The research sample was determined by the purposive sampling method, so a sample of 11 companies was multiplied by 9 years of research to obtain 99 observations. The analytical technique used in this study is moderating regression analysis (MRA) with Eviews 10 software tools.
This study partially shows that profitability has a positive effect on firm value, liquidity has a negative effect on firm value, and capital structure has a negative effect on firm value. All of these independent variables together affect firm value. The dividend policy variable moderates the relationship between profitability and firm value but does not moderate the relationship between liquidity and capital structure on firm value.
Keywords: profitability, liquidity, capital structure, dividend policy, firm value.
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