Effect Of Profitability On Firm ValueWith Dividend Policy As A Mediation Variables In Manufacturing Companies

ABSTRACT : The purpose of this study is to determine the effect of profitability on firm value with dividendpolicy as a mediating variable in manufacturing companies. This research was conducted in all manufacturingcompanies listed on the Indonesia Stock Exchange (IDX) in the 2016-2018 period. The number of samples inthis study were 37 companies using the purposive sampling method. Data collection was carried out using nonparticipant observation methods, namely through financial report data published on the official IDX website,namely www.idx.co.id. The data analysis technique used in this study is the path analysis . The results of theanalysis show that profitability has a significant positive effect on firm value. Profitability has a significantpositive effect on dividend policy. Dividend policy has a significant positive effect on firm value. The dividendpolicy significantly mediates the effect of profitability on firm value in manufacturing companies.

Keywords -Profitability, Dividend Policy and Firm Value